U1 AOS 2 GST

Question 1

What does GST stand for?

Answer 1

Goods and Services Tax

Question 2

Fill in the blank: GST is levied on the supply of _____ and _____.

Answer 2

goods, services

Question 3

True or False: GST is only applicable to goods and not services.

Answer 3

False

Question 4

If the selling price of a product is $1250, how much GST is payable?

Answer 4

$125

Question 5

True or False: GST receivable is an asset on the balance sheet.

Answer 5

True

Question 6

Fill in the blank: GST receivable represents the amount of GST that a business expects a __________ from ATO.

Answer 6

GST refund

Question 7

Which financial statement includes GST payable?

Answer 7

Balance Sheet

Question 8

Multiple Choice: What type of account is GST payable classified as? A) Current Liability B) Current Asset C) Equity D) Expense

Answer 8

B) Current Liability

Question 9

True or False: Cash payment journals are used to record all cash transactions.

Answer 9

True

Question 10

Which journal is specifically used for recording GST settlements?

Answer 10

Cash payments journal

Question 11

If GST received is less than GST paid during the period, then we have a ________________. This is a Current Asset (money owed to us by the ATO).

Answer 11

GST Receivable