When the Goods from a Sale with HST Are Returned

question 37

Multiple Choice

When the goods from a sale with HST are returned, the HST account debited is

• A) HST Expense.
• B) HST Payable.
• C) HST Recoverable.
• D) No entry regarding HST is needed.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Labor Supply Curve

A graphical representation showing the relationship between the wages offered and the quantity of labor workers are willing to supply.

Backward-Bending

A term often used in labor economics to describe the supply curve of labor, which can bend backwards at higher wage levels, indicating that higher wages can lead to a decrease in labor supply.

Substitution Effect

The economic principle that as the price of a good or service rises (or incomes decrease), consumers will replace pricier items with less costly alternatives, holding the utility derived from consumption constant.