GST Collected on Sales Is Accumulated in a Liability Account

question 27

Multiple Choice

GST collected on sales is accumulated in a liability account called GST payables and GST paid on purchases is accumulated in an account with a debit balance called GST receivables. What type of account is GST receivables?

• A) Asset
• B) Expense
• C) Contra expense
• D) Contra liability

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Definitions:

Mandatory Dispute Resolution

A process that requires parties in a dispute to participate in a structured attempt to resolve it, typically through methods such as arbitration or mediation, before pursuing traditional legal action.

Mediation

A dispute resolution process where a neutral third party helps conflicting parties to reach a mutual agreement.

Bargaining Impasse

A deadlock in negotiations between parties, typically between employers and labor unions, where no agreement can be reached.

Interest Dispute

A disagreement between labor and management over the terms and conditions of employment, including wages, working hours, and other aspects of a job.