When a company is obligated for sales taxes payable, it is reported as a (n) : ?

The choices can be found elsewhere and as follows:

Estimated liability

Contingent liability

Current liability

Business expense

Long-term liability

I think the correct answer is the third option. When a company is obligated for sales taxes payable, it is reported as a current liability. Sales taxes payable is a liability account in which is stored the aggregate amount of sales taxes that a business has collected from customers on behalf of a governing tax authority.