Why Does an Inventory Purchase Not Usually Include a RST/PST

question 35

Multiple Choice

Why does an inventory purchase not usually include a RST/PST amount -

• A)the RST/PST default has not been set up
• B)the RST/PST amount was missed and not entered
• C)the merchandise is for resale and therefore RST/PST exempt
• D)only the GST is required on business purchases

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Definitions:

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a relatively safe investment.

Vault Cash

Paper currency and coins held by a bank in its vault and used to satisfy demands for withdrawals or to resolve deficits in reserve accounts.

Federal Securities

Financial instruments issued by the federal government, such as treasury bills and bonds, used to raise funds for governmental expenditures.

Common Stock

Common stock is a type of security that represents ownership in a corporation, with holders typically having voting rights and potential dividends.