Question 23

Canada's tax legislation allows the use of the quick method of accounting for GST/HST because

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Question 23 options:

	Canada's free trade agreement with the US requires that the option exist.
	it was forced to allow this by the Canadian Small Business Association.
	it wants to simplify tax handling for some smaller companies.
	it wants to collect tax revenue quicker.

Question 24 (1 point)

If $4,000 was the beginning inventory, $10,000 in new inventory purchases were made and the cost of goods sold were $7,000, how much was ending inventory?

C08

Question 24 options:

	$4,000
	$7,000
	$14,000
	$3,000

Question 25 (2 points)

A cash payments journal and a cash disbursements journal are the same thing.

Question 25 options:

	True
	False

Question 26 (1 point)

An entry for a purchase return will include

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Question 26 options:

	a credit to Sales Returns and Allowances.
	a debit to Sales Returns and Allowances
	a credit to Inventory.
	a debit to Inventory.

Question 27 (1 point)

Joe received $4,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

C08

Question 27 options:

	Debit Unearned Rent $1,000, credit Rental Income $1,000
	Debit Cash $4,000; credit Rental Income $4,000
	Debit Cash $1,000; credit Rental Income $1,000
	Debit Unearned Rent $4,000, credit Rental Income $4,000

Question 28 (1 point)

If a physical count is not completed and shrinkage has occurred, beginning inventory will be overstated in the next period.

C08

Question 28 options:

	True
	False

Question 29 (1 point)

Trade discounts are not subject to HST.

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Question 29 options:

	True
	False

Question 30 (1 point)

The value of inventory includes

C07

Question 30 options:

	Purchases + Freight - Purchases Discount - Purchases Returns and Allowances.
	Purchases + Freight
	Purchases + Purchases Returns and Allowances.
	Purchases + Freight - Purchases Returns and Allowances.

Question 31 (1 point)

The buyer issues a debit memorandum to indicate that a previous purchase amount is being reduced because goods were returned or an allowance was requested.

C07

Question 31 options:

	True
	False

Question 32 (1 point)

Sales discounts are always given on taxes such as PST and HST.

C13

Question 32 options:

	True
	False