Which Statement About Sales Taxes Is Correct

question 27

Multiple Choice

Which statement about sales taxes is correct?

• A)The consumer is responsible for remitting the tax to the government.
• B)Taxes are uniformly applied to all sale transactions.
• C)Businesses can deduct the GST paid on their purchases from GST collected.
• D)The same products that are exempt from GST are exempt from PST.

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Definitions:

Inventory Holdings

The quantity of goods and materials on hand that are available for sale or for use in production processes.

Production Manager

An individual responsible for overseeing the production process, coordinating all activities involved in the creation of goods or services.

Long-term Debt

Loans or other forms of debt that have a repayment period of more than one year.

Cash Increase

An increase in a company's cash flow, resulting from its operational, investing, or financial activities.