Sales Tax Payable is a(n): Multiple Choice asset account with a normal debit balance. liability account...

Sales Tax Payable is a(n):

Multiple Choice

asset account with a normal debit balance.
liability account with a normal debit balance.
liability account with a normal credit balance.
revenue account with a normal credit balance.

Expert Solution

Sales tax payable is a liability which is payable to government against sales rvenue

Sales tax Payable will come in transaction of sales revenue as below



Account Title and explanation

Cash / Account Receivable	Increases the assets - Debit Balance
Sales Revenue	Increases the shareholder's equity - Credit Balance
Sales Tax Payable	Increases the liability - Credit Balance

As per above explanation,

Answer = Option 3 = liability account with a normal credit balance

ekkarill92 answered 3 years ago

1.) Bonds payable is a(n) _________________ account. Multiple Choice: Choose one of the following listed below...

1.) Bonds payable is a(n) _________________ account. Multiple Choice: Choose one of the following listed below Asset, Liability, Equity, Revenue, Expense 2.) Discount on Bonds Payable is a(n) _________________ account. Multiple Choice Asset, Liability, Equity, Revenue, Expense 3.) Common Stock is a(n) _________________ account. Multiple Choice Asset, Liability, Equity, Revenue, Expense 4.) Dividends is a(n) _________________ account. Multiple Choice Asset, Liability, Equity, Revenue, Expense 5.) Premium on Bonds Payable is a(n) _________________ account. Multiple Choice Asset, Liability, Equity, Revenue, Expense...

Account Definition Normal Balance Liability Accounts Payable Amounts the business owes to a creditor, resulting from...

Account Definition Normal Balance Liability Accounts Payable Amounts the business owes to a creditor, resulting from an oral or implied promise to pay at some future date Credit Accounts Receivable Accrued Expenses Accrued Interest Receivable Accrued Utilities Accrued Wages Payable Additional Paid-in Capital Advance Deposit Cash Common Stock Common Stock Expense Income Taxes Payable Inventories Marketable Securities Notes Payable Prepaid Expenses Property & Equipment Retained Earnings Revenue Treasury Stock Unearned Revenues

1: -Balance of account = Debits – -Asset accounts have a normal balance. -The...

1: -Balance of account = Debits – __________ -Asset accounts have a normal __________ balance. -The dividends account has a normal __________ balance. -Revenue accounts have a normal __________ balance. -Expense accounts have a normal __________ balance. -Liabilities and retained earnings accounts normally have a __________ balance. -The retained earnings account includes income statement accounts and the __________ account.

Why is the current tax liability (income tax payable or current tax payable) at the end...

Why is the current tax liability (income tax payable or current tax payable) at the end of a reporting period not usually equal to the Income tax expense for that period?

The balance in the Discount on Bonds Payable account is a debit of $3,200. What is the bond's carrying amount?

The balance in the Bonds Payable account is a credit of $68,000. The balance in the Discount on Bonds Payable account is a debit of $3,200. What is the bond's carrying amount? A. $68,000 B. $64,800 C. $71,200 D. $3,200

If the Estimated Warranty Liability account has a debit balance throughout the entire year, what does...

If the Estimated Warranty Liability account has a debit balance throughout the entire year, what does that mean about the accruals being done? If the account has a debit balance at the end of the year, is retained earnings going to be over- or under-stated? Why?

A(n) __ is a simplified balance sheet. asset account T - account bank account _ has...

A(n) ______ is a simplified balance sheet. asset account T - account bank account _____ has the key advantage that it is readily understood by the public and is highly transparent. The reserve rule Inflation targeting Prime rate targeting Discount rate targeting The interest rate the Fed charges other banks for loans is the ______ rate and the interest rate on over night loans from one bank to another bank is the ______ rate. federal funds; discount reverse repo; repo...

Bandung Corporation began 2020 with a $46,000 balance in the deferred tax liability account. At the...

Bandung Corporation began 2020 with a $46,000 balance in the deferred tax liability account. At the end of 2020, the related cumulative temporary difference amounts to $350,000 and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $525,000, the tax rat for all years is 20%, taxable income for 2020 is $405,000. a) Compute income taxes payable for 2020 b) Prepare the journal entry to record income tax expense, deferred income taxes, and income...

Sweet Corporation began 2017 with a $45,000 balance in the Deferred Tax Liability account. At the...

Sweet Corporation began 2017 with a $45,000 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $174,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $354,000, the tax rate for all years is 40%, and taxable income for 2017 is $318,000. Income taxes payable for 2017? $______ B.) Prepare the journal entry to record income tax expense, deferred income taxes, and income...

All amounts are expressed in Canadian dollars and report normal balance. Account Balance Accounts payable $...

All amounts are expressed in Canadian dollars and report normal balance. Account Balance Accounts payable $ 4,360 Accounts receivable $ 200 Advertising expense $ 3,200 Bank loan payable $ 8,000 Building (net value) $ 26,100 Cash $ 34,000 Common shares $ 16,000 Cost of goods sold $ 92,000 Depreciation expense, Building $ 4,400 Income tax payable To determine Interest expense $ 600 Inventory $ 10,800 Land $ 16,000 Prepaid rent $ 9,200 Rent expense $ 1,000 Retained earnings (opening balance...

Question