Sales Tax Flashcards
What are the different types of taxes
Sales tax- charged on good and services, income tax- charged on income , tariffs- charged on country who imports goods
Definition of sales tax
Tax dollars generated from business transactions
Prior to 2010 what were the sales taxes
PST- provincial sales tax- 5%
GST- good and services tax- 8%
What is HST and why did they create it
Harmonized sales tax, it’s more efficient to have one tax instead of 2
HST payable means
Tax dollars are collected by the seller
HST recoverable means
Tax dollars are charged by the buyer
Bank credit advice meaning
A business form by means of a bank informs a depositor that an increase has been made in the bank account and the reason for the increase.
Bank debit advice
A business form by means of a bank informs a depositor that a decrease has been made in the bank account and the reason for the decrease
Cash receipts daily summary
A business paper, prepared daily, that lists the onesies received by a business from customers on account and other sources.
Cash sales slip
A business form showing the details of a transaction in which goods or services are sold to a customer for cash
Cheque copy
Is a document supporting the accounting entry for a payment by cheque
Journal
specially ruled book in which accounting entries are recorded in the order in which they occur. A transaction is recorded in the journal before the ledger
Point of sale terminal
Is a computerized sales register that allows a business and its customers to exchange funds electronically
Purchase invoice
Is a business form representing a purchase of goods or services on account
Remittance advice
Is a form accompanying the cheque explaining the payment
