Master the UCF ACG2021 Principles of Financial Accounting Final Exam. Study with comprehensive practice tests, flashcards, and multiple choice questions, each with detailed explanations. Ace your exam!

Sales tax payable refers to the amount of sales tax that a business collects from its customers during the sale of goods or services. This amount is not revenue for the business; rather, it is a liability that the business owes to the government. When a business makes a sale, it adds sales tax to the sale price, collects this amount from the customer, and must remit it to the appropriate tax authority.

The concept is important for accounting as it affects how a business reports its liabilities and ensures compliance with tax regulations. The amount collected is recorded on the balance sheet as a liability until it is paid to the government, at which point the liability decreases.

The other options describe different concepts. The payment to suppliers relates to what a business might incur when purchasing goods, while non-refundable sales tax and sales tax on purchases are not relevant in this context concerning the amounts owed to the government by the business for sales it has transacted.