Question:
"Which of following statements about sales tax is/ are true?
1. Sales tax charged on purchases is an expense to a busisness if the business is not sales tax registered.
2. Sales tax is charged by all business when they sell products."
Please show me the reason why the statement 2 is incorrect.
I am confused about second statement, because I know will all business, the double entry when they sell the goods is:
DR AR/ CR output Sales tax + CR Sales
Ask the Tutor ACCA FA
Sales tax
10y ago#1Sales tax is only charged by businesses that are registered for sales tax.
If they are not registered (because their revenue is low) then they do not charge sales tax.
Thank you for your supporting, I have passed the F3 exam with 88% 2 hours ago :*
10y ago#3That is great news. Many congratulations (especially on getting such a high mark) :-)
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