HiLo Running Store Is Not Registered for GST

question 108

Multiple Choice

HiLo Running Store is not registered for GST. Which of the following statements is INCORRECT?

• A)The firm will not be able to claim a refund from the ATO on GST paid to suppliers.
• B)Journal entries for sales and purchases will not include a GST Clearing account.
• C)Purchases of inventory will be recorded at the 'gross' amount, that is, the amount including GST.
• D)The firm will charge a flat rate of GST on all goods sold.

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Definitions:

Type I Schizophrenia

According to some theorists, a type of schizophrenia dominated by positive symptoms, such as delusions, hallucinations, and certain formal thought disorders.

Guilty By Reason Of Insanity

A legal defense by which a defendant claims their mental illness was so severe at the time of the crime that they were unable to discern right from wrong, absolving them of legal responsibility for the said crime.

Professional Autonomy

The independence professionals have to make decisions based on their expertise within their field.

Acquitted On Grounds Of Insanity

A legal verdict whereby an individual is found not guilty of a crime due to mental illness, rendering them incapable of understanding the nature or wrongness of their actions at the time.