The debit for a sales tax properly levied and paid on the purchase of machinery preferably would be a charge to

Q: How is sales tax recorded? Is it considered an expense of a business? Why or why not?

A: Most states levy sales taxes on goods and services. Those states differ on what is taxed and for how…

Q: Who is the person statutorily liable to pay the consumption tax on importation of goods? * Seller…

A: In case of importation, the person who imports goods shall be liable to pay the consumption tax. In…

Q: 1. Which of the following costs shall be considered as period cost instead of product cost?…

A: Costs that are directly incurred in manufacturing activity are generally considered product costs.…

Q: The seller collects sales taxes from the customer at the time of sale and reports the sales taxes as…

A: Sales tax: When the one person sold goods to another person for the business or resold purpose then…

Q: 2. Which of the following costs would most likely be a discretionary fixed cost? A. The rent of the…

A: The correct option is D that is, Advertising. Discretionary fixed costs are such costs which are…

Q: which amongst the following would not form part of cost of equipment? A) freight charges B)…

A: Cost of equipment means the amount which is incurred to acquire the equipment and to bring the…

Q: Which of the following items would not be depreciable in computing income taxes? a. A company’s…

A: Any fixed asset purchased has a fixed life throughout which it has to be used. Over the course of…

Q: Which cost incurred on equipment does not belong to the group?   Freight on acquisition of…

A: The total cost of acquisition of non cash assets include the acquisition price, freight charges,…

Q: Why do many companies use one method to calculate depreciation for the income statement prepared for…

A: Companies use different methods for tax reporting and financial reporting because by using the…

Q: It is a tax on the value of an article increased at each stage of its production or distribution.…

A: Excise tax is a type of indirect tax employed in case of specific goods (eg. fuel, tobacco,…

Q: The following statements are correct, except: a. The amount of percentage tax is based on the gross…

A: Tax is a charge which is paid by the taxpayer. The percentage tax is the tax which is calculated on…

Q: What is the sales tax? Is it an expense or a liability?

A: Sales tax is the tax on sales which is levied by the government. However, sales tax is an indirect…

Q: How are deferred taxes calculated? What determines if the company has a deferred asset or a deferred…

A: Deferred tax is a fictitious asset or liability that reflects company income taxation on a premise…

Q: net income before tax that the company would disclose on an ement is: absorption-costing inc

A: Absorption costing is a cost accounting method to find out the cost of a product. It takes into…

Q: The tax rate is the ratio between the amount of tax and the amount of income. true Error

A: >Tax rate is the rate of tax that is levied by the regulating authorities.>Income tax rate is…

Q: Before paying a tax invoice for the purchase of goods, list steps you would take to check that the…

A: Answer

Q: Which of the following should be capitalized when a pieceof production equipment is acquired for a…

A:

Q: Which of the following is treated as business expense?  a. Installation cost of business equipment…

A: Business expenses are the expenses which are incurred for the business and required for the…

Q: tion of goods may be taxed based on?   A.Gross Se

A: Importation of goods refers to the process when an entity brings back some goods from another…

Q: Assuming it meets the conditions to net assets and liabilities, how will the company report deferred…

A: Under US GAAP, Crystal​ Critters should net off all the deferred tax assets and liabilities into one…

Q: is less Tax on Profit on Sale of Asset and less Operating Costs (revenue and expenses) or (other…

A: Capital Budgeting helps the company to check the viability of the project. It will help the company…

Q: When a sale is made and sales tax is collected from the customer, the sales tax is recorded as a/an…

A: Sales tax is collected by the business owner for the government from the customer .

Q: What is the treatment of any input tax paid by a non-VAT (but subject to percentage tax) seller on…

A: Input tax refers to the tax which is charged on the goods and services supply or both made to the…

Q: How do I calculate the amount of sales tax that is included in total receipts?

A: Sales tax = Actual sales * Tax rate

Q: Discuss how a sales tax is regressive.

A: 1. Regressive Tax - Regressive Tax is a tax on the amount which decreases subject to the amount…

Q: Which of the following accounts is credited by the seller when tax is collected on retail​ sales?…

A: Sales Tax Payable: Sales Tax  is levied on the sales made. It is collected by the seller from the…

Q: Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset…

A: Explanation: Tax Base is defined as the amount that is attributed to an asset or liability for tax…

Q: Difference between the tax treatment of the purchase of a capital asset, such as a machine vs the…

A: There are various types of expenses which is incurred by the businessman in order to conduct it…

Q: A domestic transportation contractor by land is engaged in the transport of passengers, goods and…

A: VAT is known as the value added tax It is a type of tax which falls under the category of indirect…

Q: Which of the following statements is true about sales tax? O a. Sales tax is collected by retailers…

A: Sales: It can be defined as the selling of goods and services by the business to its customers.

Q: 3. The debit for a sales tax properly levied and paid on the purchase of machinery preferably would…

A: Property, Plant, and Equipment:Property, Plant, and Equipment refers to the fixed assets, having a…

Q: Assuming all applicable input taxes are to be claimed as credits against output taxes, the VAT…

A: Vat payable is the tax payable which is the indirect tax which is paid to the government, its…

Q: ages for cost of inve gal business mbling activities

A: Gross Income - It is the total income from all sources i.e. business or services, returns,…

Q: Sales of goods are taxed based on?   A. Gross Selling price B. Gross Receipt C. Landed Cost D.…

A: Gross Selling price is the price which is normally charged from the customer is selling the goods.…

Q: What are the benefits of calculating depreciation differently for financial reports and for tax…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: The primary source of revenue for a wholesaler is Oinvestment income. service fees. O the sale of…

A: The primary source of revenue is the main sources of income generated through main course of…

Q: Purchase of Heavy equipment by the business was recorded as an expense on the income statement so…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Q: Discuss the treatment of imported goods for (a) Transit and (b) Transshipment, in terms of liability…

A: The fee levied on commodities when they are carried across international boundaries is known as…

Q: The following statements are correct, except: a. The amount of percentage tax is based on the gross…

A: Gross receipts are defined as all income, regardless of form, collected or accumulated (in…

Q: When a company exchanges machinery and receives a trade-in allowance greater than the book value,…

A: Solution: When a company exchanges machinery and receives a trade-in allowance greater than the book…

Q: Licenses, registrations & permits, service fees, property rentals are examples of _______.…

A: There are various forms where a government derives its revenue, some are Direct Tax Indirect Tax…

Q: Explain how to record sales tax.

A: Sales tax: It is a tax that the Company collects from the customer when the sale is made on cash or…

Q: Which of the following would be included in the journal entry to record the payment of accrued sales…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: at registere

A: A domestic carrier by land is engaged in the transport of passengers. It is not VAT-registered and…

Q: Which amongst the following would not form part of cost of equipment? a. Freight charges b.…

A: The company calculates the cost of any asset by adding the relevant cost in bringing the asset into…

Q: Which of the following has a different treatment for cash and accrual basis of tax accounting?…

A: Under cash basis accounting, the transactions are recorded when the income is actually received or…

Q: For the purpose of computing the taxable income and the income tax, it shall include all business…

A: Hi student Since there are multiple questions, we will answer only first question.