Which of the Following Statements Is Correct

question 39

Multiple Choice

Which of the following statements is correct?

• A) Income and expenses are recorded net of GST.
• B) Journal entries to record GST are regarded as internal transactions.
• C) The account, GST Payable, represents the amount of GST payable to the entity's suppliers.
• D) If the GST inclusive price of inventory is $120 the GST component is $12.

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Definitions:

Internal Political Strife

Conflict among members within the same organization or group, often hindering progress or decision-making.

Global Marketplace

An international system for the exchange of goods, services, and capital across world markets, where businesses operate and compete on a worldwide scale.

Direct Investment

An investment made to acquire a lasting interest in or effective control over an enterprise in another country.

Exporting

The act of selling goods or services produced in one country to buyers in another country.