Archie's has a $12 000 credit balance in the GST Clearing account. Which of the following statements is CORRECT?
A)This is an amount owing by the government to the business.
B)There is a $12 000 current liability to report on the balance sheet.
C)The tax paid to suppliers has exceeded the tax collected from customers for the period.
D)GST Clearing is a tax expense.

Question

Quizplus · Accepted Answer

The Answer of Archie's has a $12 000 credit balance in the GST Clearing account. Which of the following statements is CORRECT?
A)This is an amount owing by the government to the business.
B)There is a $12 000 current liability to report on the balance sheet.
C)The tax paid to suppliers has exceeded the tax collected from customers for the period.
D)GST Clearing is a tax expense.

Archie's Has a $12 000 Credit Balance in the GST