Question

The account Sales Tax Payable represents a company's liability to the government for sales taxes collected. True O False

Answer 1

	ANSWER = 1
	The Account sales tax payable represents a company's liability to the government for sales tax collected
	Above statement is correct.
	Answer = True
	ANSWER = 2
		2016	2017
	Sales	$5,60,000	$7,60,000
	Warrant Expenses @ 8% =	$44,800	$60,800
	Warraty Liability created In year 1 =	$44,800
	Less: Amount paid for warranty expenses	$7,280
	Balance at year end	$37,520
	Add: Warranty liability of Year 2017	$60,800
	Total Liability	$98,320
	Less: Amount paid for warranty expenses	$32,000
	Balance of warranty liability at december 31, 2017	$66,320
	Answer = Option B = $ 66,320
	ANSWER = 3
	Current liabilities are obligation due within one year or within the companies normal opeating cycle if it is longer than one year
	Above statement is not correct,
	Answer = False
	ANSWER = 4
	Answer = Option A = Liability of a known amount and liabilities whose amount must be estimated