Computerized Accounting Quiz 2

Create an informative image showing various accounting concepts like GST, HST, and PST with visuals of tax documents, calculators, and business settings, in a professional style.

Test Your Knowledge on Computerized Accounting

Are you ready to challenge your understanding of computerized accounting concepts, especially related to GST, HST, and PST? This quiz is designed to test your knowledge with 16 engaging questions that cover essential tax regulations in Canada.

Assess your knowledge on sales taxes.
Understand the impact of GST/HST on businesses.
Learn about the differences between various tax types in Canada.

16 Questions4 MinutesCreated by AccountingNinja357

The Harmonized Sales Tax or HST is applied

To all goods and services sold in HST participating provinces in Canada

Only to merchandise sold in HST participating provinces in Canada

To all goods and services except food and medicine

To most goods and services sold in participating provinces in Canada

Businesses must register for GST and apply GST to sales

They sell to customers in Canada

They have annual sales over $30 000

They import goods from outside of Canada

Registration for GST favours a business because

It increases revenue as customers pay more for the products and services

It makes the tax reports easier to prepare

It allows a business credits for the GST it pays for business-related expenses

There are no advantages to registering for GST

Items that are not taxable for GST

Are mostly basic necessities

Are consumed in Canada

Are not used or needed by most Canadians

Here are no items that do not have GST applied

A business that is registered to collect PST from customers

Deducts the PST it pays on business-related expenses from the PST it remits to the provincial government

Does not pay PST on any business-related expenses

Pays PST on most goods and services, just like GST

Pays PST on taxable supplies and services that it does not resell

HST (Harmonized Sales Tax) differs from GST in that

It has a different tax rate

Includes a portion for provincial sales tax

It applies to a different set of products and services

A and b above

Provincial sales taxes

Apply at the same rate in all provinces and territories in Canada

Are always calculated on the sales amount before any other taxes are added

On purchases that are treated as business expenses

Increase revenue for a business by the amount of the tax collected from customers

Businesses that are allowed to use the Quick Method for applying GST/HST include

Banks and other financial institutions

Any business with annual sales less than $500 000

Some small businesses

All businesses may use the Quick Method

GST/HST differs from other sales taxes in that

It applies at all levels of sales

The same rate applies to all goods and services sold

All goods and services have GST/HST applied

GST/HST is applied in the same way as other sales taxes

Provincial sales taxes

Are charged on all goods and services

Are charged on the item price plus GST to calculate the HST amount

Are never charged on services

None of the above

The percentage tax rate applied for the Goods and Services Tax

Is constant at 5 percent

Varies with the sales tax rate applied by the provinces

Applies to all goods and services

Can be changed through federal government legislation

Sales taxes on good and services in Canada

Are the same across all provinces and territories

Are the same for all goods and services

Are charged at the rate applicable to the province of destination

All of the above

Provinces that apply HST

Have an HST rate that is usually based on the original provincial tax rates

Do not have provincial taxes

All have the same HST rate

Charge one HST rate for goods and a different rate for services

HST rates

Are the same for all provinces

Are set by the federal government

Apply to all goods and services that have GST applied

May be different for different provinces

PST paid by a business on business-related purchases

Is the same rate for all provinces

Is not paid if the goods will be resold

Is refundable for all business-related purchases

PST is not paid on any business-related purchases

Which of the following statements is true about HST

HST is applied to all goods and services

HST is applied only for goods that the business will not sell to customers

HST is applied in all provinces of Canada

HST rates depend on the provincial tax rate portion included

Computerized Accounting Quiz 2

Test Your Knowledge on Computerized Accounting

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