When a business collects GST from customers, it records:
A) a contra asset.
B) a liability.
C) an expense.
D) an asset.

Name: When a business collects GST from customers, it records: A) a contra asset. B) a liability. C) an expense. D) an asset.
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Question

Quizplus · Accepted Answer

When a business collects GST from customers, it is collecting it on behalf of the government. The business has a liability to remit this amount to the government at a later date. Therefore, the correct option is B - liability.

When a Business Collects GST from Customers, It Records