Which Statement About Sales Taxes Is Correct

question 23

Multiple Choice

Which statement about sales taxes is correct?

• A)Businesses can recover the PST paid on all of their purchases.
• B)Goods purchased for resale are exempt from PST.
• C)Businesses remit only the GST collected on sales transactions.
• D)The same products that are exempt from HST are exempt from PST.

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Definitions:

Income Statement

The income statement is a financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and net income or loss.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and stockholders' equity at a specific point in time.

Income Statement

A financial statement that summarizes revenues, expenses, and profits or losses of a company over a specific period, showing how revenue is transformed into net income.

Statement Of Owners' Equity

A financial document detailing the changes in owner's equity over a specific period through contributions, withdrawals, and earnings.