Question: Explain why when a business pays GST on the purchase of goods or services it records this as GST Receivable and an asset. When a

Explain why when a business pays GST on the purchase of goods or services it records this as GST Receivable and an asset. When a business provides goods or services which are taxable it records the GST component of the transaction as GST Payable, a liability.

Step by Step Solution

★★★★★

3.58 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

When a business pays GST on purchasing goods or services it is allowed to offset this a... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

The finance director for the City of Green Falls printed the General Fund Revenues and Appropriations Ledgers shown below for the year just ended. The beginning-of-the-year fund balance was $160,160....

Explain why, when a company uses the indirect method to prepare the operating activities section of the statement of cash flows, a decrease in a current asset is added back to net income.

Multiple Choice Questions 1. An asset can be disposed of by: A) Discarding it. B) Selling it. C) Exchanging it for another asset. D) Donating it to charity. E) All of the above. 2. Natural resources:...

Is it appropriate for a city or state official to accept a bid for the performance of work or the purchase of goods or services that is higher than others, even if there are no laws requiring that...

. Explain why when a business pays GST on the purchase of goods or services it records this as GST Receivable and an asset. When a business provides goods or services which are taxable it records the...

Part A (2 marks) Silicon Valley Ltd spent $500,000 on computer software development and recorded the cost as an asset on its statement of financial position as at 31 December 2021. As at this date,...

PLEASE ANSWER ASAP PLEASSSE Part A (2 marks) Silicon Valley Ltd spent $500,000 on computer software development and recorded the cost as an asset on its statement of financial position as at 31...

Need help asap Part A (2 marks) Silicon Valley Ltd spent $500,000 on computer software development and recorded the cost as an asset on its statement of financial position as at 31 December 2021. As...

Silicon Valley Ltd spent $500,000 on computer software development and recorded the cost as an asset on its statement of financial position as at 31 December 2021. As at this date, it is impossible...

Part A (2 marks). Silicon Valley Ltd spent $500,000 on computer software development and recorded the cost as an asset on its statement of financial position as at 31 December 2021. As at this date,...

1. Compute the closing inventory and the cost of goods sold under the following assumptions: a. FIFO periodic b. FIFO perpetual

14. Consider the function f:{1,2,3,4}-{1,2,3,4} given by the graph below. [6] S(1), 4 3 2 1 1 2 3 4 a. Is f injective? Explain. b. Is f surjective? Explain. . Write the function using two-line...

Record the sale by Balus Company of $ 1 4 0 , 0 0 0 in accounts recelvable on May 1 . Balus is charged a 2 5 0 % factoring fee. Journal entry worksheet 1 Record the sale of receivable. Note: Enter...

1. Explain how migration affects allele frequencies between neighboring populations, and calculate the magnitude of such a change.

What is the total return for a mutual fund with the following characteristics? All mutual funds carry the same level of diversification and exposure to risk. True False Mutual fund fees and expenses...

Discuss the concept of buffering and explain how a buffer cache improves I / O performance. What are the potential drawbacks of buffering and how can they be addressed?

Please help me understand the equations for this Use the information below to answer Questions #16 - 18. 28% of US. adults favor the use of unmanned drones by police agencies. Twelve US adults are...