Answer:
The sales tax must be recognized just after making the sale and the business can use that fund to finance its operations or investment required that the company pays its liability on time.
Step-by-step explanation:
The business is liable to pay sales tax if its sales on all of its sales proceeds if it exceeds from a certain level of sales which is a statutory requirement. The businesses uses the sales taxes collected to fund its operation and pay their debts on time to avoid any fines imposed from the government.