The Journal Entry to Remit GST to the Receiver General

question 54

Multiple Choice

The journal entry to remit GST to the Receiver General includes:

• A)credit to GST Payable.
• B)debit to GST Recoverable.
• C)credit to GST Recoverable and debit to GST Payable.
• D)debit to GST Recoverable and credit to GST Payable.

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Definitions:

Net Operating Income

The profit generated from a company's everyday business operations, excluding expenses and taxes.

Fixed Manufacturing Overhead

The total of all costs that remain constant regardless of the level of production, including expenses such as rent, utilities, and salaries of permanent staff in a manufacturing setting.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead costs.

Segmented Income Statement

A financial statement that breaks down income, expenses, and profit margins by specific segments, such as products, services, or geographical regions, within a company.