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:

Unusual Items

Non-recurring or uncommon transactions that are outside the usual business operation, which might distort the financial statements if not separately disclosed.

Income Statement

A financial statement that reports a company's financial performance over a specific period of time, detailing revenues, expenses, and profits or losses.

Ratio Analysis

A financial analysis method that involves calculating and interpreting financial ratios from statements to assess a company's performance, liquidity, efficiency, and profitability.

Marketability

Marketability refers to the ease with which a product or service can be sold or marketed to customers.