GST Paid by a Business on the Purchase of Its

question 17

Multiple Choice

GST paid by a business on the purchase of its goods and services, and for which a reduction of GST collected will be claimed from the tax department, is stored in an account called:

• A) GST holdings.
• B) GST collected.
• C) GST expense.
• D) GST receivable.

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Definitions:

Services Rendered

Services rendered refer to the completion and provision of services agreed upon between a provider and a recipient.

Undisclosed Principal

A party in a contractual agreement whose identity is not revealed to the third party by the agent during the time of the agreement.

Partially Disclosed Principal

A principal whose identity is not known by a third party, although the third party is aware that the agent is making an agreement on behalf of a principal.

Vicariously Liable

A legal principle under which an individual or entity can be held legally responsible for the actions of another, typically in an employer-employee relationship.