A Retailer Buys 200 Tables at $550 Each (Including GST

question 6

Multiple Choice

A retailer buys 200 tables at $550 each (including GST of $50) and sells all of them for $880 each (including GST of $80) .How much needs to be remitted to the tax department?

• A) $6000
• B) $16 000
• C) $10 000
• D) $15 000

---

Definitions:

Current Market Value

The amount of money for which an asset can be sold in the marketplace at the current time, reflecting the most recent transaction price possible.

Historical Cost

The original monetary value of an asset, based on the purchase price or investment cost at the time of acquisition, without adjustments for inflation or market value changes.

Common-Size Balance Sheets

Financial statements that present all line items as percentages of a common base figure rather than absolute numerical figures, facilitating comparison.

Financial Structure

The mix of debt and equity that a company uses to finance its operations and growth.