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GST Collected on Sales Is Accumulated in a Liability Account

Question 27

Multiple Choice

GST collected on sales is accumulated in a liability account called GST payables and GST paid on purchases is accumulated in an account with a debit balance called GST receivables. What type of account is GST receivables?


A) Asset
B) Expense
C) Contra expense
D) Contra liability

Correct Answer:

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