Which of the following statements is true about sales tax? O a. Sales tax is collected by retailers from customers to be paid to tax authorities later. O b. Sales tax is recorded and paid by customers to tax authorities. Oc. C. Sales tax is not required to be mentioned in the sales invoice prepared by a seller. O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following statements is true about sales tax?
O a. Sales tax is collected by retailers from customers to be paid to tax authorities later.
O b. Sales tax is recorded and paid by customers to tax authorities.
O c. Sales tax is not required to be mentioned in the sales invoice prepared by a seller.
O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.
Transcribed Image Text:Which of the following statements is true about sales tax? O a. Sales tax is collected by retailers from customers to be paid to tax authorities later. O b. Sales tax is recorded and paid by customers to tax authorities. O c. Sales tax is not required to be mentioned in the sales invoice prepared by a seller. O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.
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