Sales taxes collected by a retailer are expensesGroup of answer choicesthat are not recognized by the retailer until they are submitted to the government.of the government.of the customers.of the retailer.

Sales taxes collected by a retailer are reported asGroup of answer choicescurrent liabilities.expenses.contingent liabilities.revenues.

When a company collects sales tax from a customer, the event is recorded by a debit to:Multiple ChoiceCash and a credit to Sales Tax Payable.Sales Tax Expense and a credit to Sales Tax Payable.Sales Tax Payable and a credit to Sales Tax Expense.Sales Tax Payable and a credit to Cash.

Sales revenues are usually considered earned when:Group of answer choicescash is received from credit sales.an order is received.goods are invoiced to the customer.goods are transferred from the seller to the buyer.

The cost of purchase of inventories does not includeGroup of answer choicesPurchase priceImport duties and taxesFreight, Handling and other costs directly attributable to the acquisition of goodsTrade discounts, rebates and other similar items

In general, revenue is recognized when:Multiple Choiceproduction is completed.goods or services are transferred to the customer.a purchase order is received.cash is collected.