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HiLo Running Store Is Not Registered for GST

Question 1

Multiple Choice

HiLo Running Store is not registered for GST.Which of the following statements is INCORRECT?


A) The firm will charge a flat rate of GST on all goods sold.
B) The firm will not be able to claim a refund from the ATO on GST paid to suppliers.
C) Journal entries for sales and purchases will not include a GST Clearing account.
D) Purchases of inventory will be recorded at the 'gross' amount,that is,the amount including GST.

Correct Answer:

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