7.2 - Taxes

Question 1

GST Payable

Answer 1

liablity account used to record GST collected from customers

think: payable to government

Question 2

GST Refundable

Answer 2

contra-liability account used to track GST paid on purchases
(aka. input tax credIt)

Question 3

Equation for GST Owed to Governent

Answer 3

GST Payable - GST Refundable

Question 4

HST Payable

Answer 4

liability account used to record HST collected on sales from customers

Question 5

HST Refundable

Answer 5

contra liability account used to record HST paid on purchases

Question 6

Equation to calculate HST Owed to Government

Answer 6

HST Owed to Government = HST Payable - HST Refundable

Question 7

Provincial Retail Sales Tax (PST)

Answer 7

tax on retail sales of most goods and some specified services
* charged when sold to final user/consumer only

Question 8

input tax credit

Answer 8

the amount of GST a buisness pays to other buisnesses when it buys goods or services