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When a company is obligated for sales taxes payable, it is reported as a(n):?

User RVA
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1 Answer

1 vote
The choices can be found elsewhere and as follows:

Estimated liability
Contingent liability
Current liability
Business expense
Long-term liability

I think the correct answer is the third option. When a company is obligated for sales taxes payable, it is reported as a current liability. Sales taxes payable is a liability account in which is stored the aggregate amount of sales taxes that a business has collected from customers on behalf of a governing tax authority.
User Luchxo
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