U3, AOS 1 - KK7 - GST Clearing Flashcards
What does GST stand for?
Goods and Services Tax
True or False: The GST Clearing ledger is used to track GST transactions.
True
Fill in the blank: The GST Clearing ledger is primarily used for __________.
recording GST liabilities and credits
What is the main purpose of the GST Clearing ledger?
To facilitate the calculation and settlement of GST owed to the government.
What type of transactions does the GST Clearing ledger typically include?
GST collected from sales and GST paid on purchases.
True or False: The GST Clearing ledger is only applicable for businesses registered for GST.
True
Fill in the blank: The GST Clearing ledger helps businesses calculate their __________.
net GST payable or receivable
Multiple Choice: What is a common outcome of an accurate GST Clearing ledger? A) Overpayment of tax B) Underreporting of income C) Timely tax refunds
C) Timely tax refunds
What is the consequence of inaccuracies in the GST Clearing ledger?
Potential penalties and interest from tax authorities.
True or False: The GST Clearing ledger must be audited annually.
False
Short Answer: Who is responsible for maintaining the GST Clearing ledger in a business?
The accounting or finance department.
Fill in the blank: The GST Clearing ledger is essential for __________ compliance.
tax
Multiple Choice: Which system is commonly used to manage the GST Clearing ledger? A) Manual spreadsheets B) Accounting software C) Both A and B
C) Both A and B
What does a negative balance in the GST Clearing ledger indicate?
A GST credit or refund due to the business.
True or False: The GST Clearing ledger is a permanent record.
True
Short Answer: What information is typically included in a GST Clearing ledger entry?
Date, transaction amount, type of GST (input/output), and balance.
