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:

Lifetime Learning Credits

A tax credit available in the United States to offset higher education expenses, applicable to an unlimited number of tax years.

American Opportunity Tax

A credit offered to first four years of higher education expenses, providing a tax break to defray the costs of tuition and related expenses.

Education Expenses

Costs associated with education, such as tuition fees, textbooks, and other school-related expenses, which may be eligible for tax deductions or credits.

Elderly

A categorical term used to describe individuals who are advanced in age, typically those who are aged 65 or older.