Question 1

HST rates -

Accepted Answer

A) are the same for all provinces 
B) are set by the federal government 
C) apply to all goods and services that have GST applied 
D) may be different for different provinces 
A) are the same for all provinces 
B) are set by the federal government 
C) apply to all goods and services that have GST applied 
D) may be different for different provinces D

Question 2

Businesses that are allowed to use the Quick Method for applying GST/HST include -

Accepted Answer

A) banks and other financial institutions 
B) any business with annual sales less than $500 000 
C) some small businesses 
D) all businesses may use the Quick Method 
A) banks and other financial institutions 
B) any business with annual sales less than $500 000 
C) some small businesses 
D) all businesses may use the Quick Method C

Question 3

Provinces that apply HST -

Accepted Answer

A) have an HST rate that is usually based on the original provincial tax rates 
B) do not have provincial taxes 
C) all have the same HST rate 
D) charge one HST rate for goods and a different rate for services 
A) have an HST rate that is usually based on the original provincial tax rates 
B) do not have provincial taxes 
C) all have the same HST rate 
D) charge one HST rate for goods and a different rate for services A

Question 4

Items that are not taxable for GST -

Accepted Answer

A) are mostly basic necessities 
B) are consumed in Canada 
C) are not used or needed by most Canadians 
D) there are no items that do not have GST applied 
A) are mostly basic necessities 
B) are consumed in Canada 
C) are not used or needed by most Canadians 
D) there are no items that do not have GST applied

Question 5

Businesses must register for GST and apply GST to sales if -

Accepted Answer

A) they sell to customers in Canada 
B) they have annual sales over $30 000 
C) they import goods from outside of Canada 
D) all businesses in Canada must register for GST 
A) they sell to customers in Canada 
B) they have annual sales over $30 000 
C) they import goods from outside of Canada 
D) all businesses in Canada must register for GST

Question 6

Provincial sales taxes -

Accepted Answer

A) are charged on all goods and services 
B) are charged on the item price plus GST to calculate the HST amount 
C) are never charged on services 
D) none of the above 
A) are charged on all goods and services 
B) are charged on the item price plus GST to calculate the HST amount 
C) are never charged on services 
D) none of the above

Question 7

PST paid by a business on business-related purchases -

Accepted Answer

A) is the same rate for all provinces 
B) is not paid if the goods will be resold 
C) is refundable for all business-related purchases 
D) PST is not paid on any business-related purchases 
A) is the same rate for all provinces 
B) is not paid if the goods will be resold 
C) is refundable for all business-related purchases 
D) PST is not paid on any business-related purchases

Question 8

Which of the following statements is true about HST -

Accepted Answer

A) HST is applied to all goods and services 
B) HST is applied only for goods that the business will not sell to customers 
C) HST is applied in all provinces of Canada 
D) HST rates depend on the provincial tax rate portion included 
A) HST is applied to all goods and services 
B) HST is applied only for goods that the business will not sell to customers 
C) HST is applied in all provinces of Canada 
D) HST rates depend on the provincial tax rate portion included

Question 9

The Harmonized Sales Tax or HST is applied -

Accepted Answer

A) to all goods and services sold in HST participating provinces in Canada 
B) only to merchandise sold in HST participating provinces in Canada 
C) to all goods and services except food and medicine 
D) to most goods and services sold in participating provinces in Canada 
A) to all goods and services sold in HST participating provinces in Canada 
B) only to merchandise sold in HST participating provinces in Canada 
C) to all goods and services except food and medicine 
D) to most goods and services sold in participating provinces in Canada

Question 10

HST Harmonized Sales Tax)differs from GST in that -

Accepted Answer

A) it has a different tax rate 
B) it includes a portion for provincial sales tax 
C) it applies to a different set of products and services 
D) a and b above 
A) it has a different tax rate 
B) it includes a portion for provincial sales tax 
C) it applies to a different set of products and services 
D) a and b above

Question 11

Registration for GST favours a business because -

Accepted Answer

A) it increases revenue as customers pay more for the products and services 
B) it makes the tax reports easier to prepare 
C) it allows a business credits for the GST it pays for business-related expenses 
D) there are no advantages to registering for GST 
A) it increases revenue as customers pay more for the products and services 
B) it makes the tax reports easier to prepare 
C) it allows a business credits for the GST it pays for business-related expenses 
D) there are no advantages to registering for GST

Question 12

Provincial sales taxes -

Accepted Answer

A) apply at the same rate in all provinces and territories in Canada 
B) are always calculated on the sales amount before any other taxes are added 
C) on purchases are treated as business expenses 
D) increase revenue for a business by the amount of the tax collected from customers 
A) apply at the same rate in all provinces and territories in Canada 
B) are always calculated on the sales amount before any other taxes are added 
C) on purchases are treated as business expenses 
D) increase revenue for a business by the amount of the tax collected from customers

Question 13

GST/HST differs from other sales taxes in that -

Accepted Answer

A) it applies at all levels of sales 
B) the same rate applies to all goods and services sold 
C) all goods and services have GST/HST applied 
D) GST/HST is applied in the same way as other sales taxes 
A) it applies at all levels of sales 
B) the same rate applies to all goods and services sold 
C) all goods and services have GST/HST applied 
D) GST/HST is applied in the same way as other sales taxes

Question 14

The percentage tax rate applied for the Goods and Services Tax -

Accepted Answer

A) is constant at 5 percent 
B) varies with the sales tax rate applied by the provinces 
C) applies to all goods and services 
D) can be changed through federal government legislation 
A) is constant at 5 percent 
B) varies with the sales tax rate applied by the provinces 
C) applies to all goods and services 
D) can be changed through federal government legislation

Question 15

Sales taxes on good and services in Canada -

Accepted Answer

A) are the same across all provinces and territories 
B) are the same for all goods and services 
C) are charged at the rate applicable to the province of destination 
D) all of the above 
A) are the same across all provinces and territories 
B) are the same for all goods and services 
C) are charged at the rate applicable to the province of destination 
D) all of the above

Question 16

A business that is registered to collect PST from customers -

Accepted Answer

A) deducts the PST it pays on business-related expenses from the PST it remits to the provincial government 
B) does not pay PST on any business-related expenses 
C) pays PST on most goods and services,just like GST 
D) pays PST on taxable supplies and services that it does not resell 
A) deducts the PST it pays on business-related expenses from the PST it remits to the provincial government 
B) does not pay PST on any business-related expenses 
C) pays PST on most goods and services,just like GST 
D) pays PST on taxable supplies and services that it does not resell

HST rates -

Businesses that are allowed to use the Quick Method for applying GST/HST include -

Provinces that apply HST -

Items that are not taxable for GST -

Businesses must register for GST and apply GST to sales if -

Provincial sales taxes -

PST paid by a business on business-related purchases -

Which of the following statements is true about HST -

The Harmonized Sales Tax or HST is applied -

HST Harmonized Sales Tax)differs from GST in that -

Registration for GST favours a business because -

Provincial sales taxes -

GST/HST differs from other sales taxes in that -

The percentage tax rate applied for the Goods and Services Tax -

Sales taxes on good and services in Canada -

A business that is registered to collect PST from customers -

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Exam 2: GST,HST and PST

HST rates -

Businesses that are allowed to use the Quick Method for applying GST/HST include -

Provinces that apply HST -

Items that are not taxable for GST -

Businesses must register for GST and apply GST to sales if -

Provincial sales taxes -

PST paid by a business on business-related purchases -

Which of the following statements is true about HST -

The Harmonized Sales Tax or HST is applied -

HST Harmonized Sales Tax)differs from GST in that -

Registration for GST favours a business because -

Provincial sales taxes -

GST/HST differs from other sales taxes in that -

The percentage tax rate applied for the Goods and Services Tax -

Sales taxes on good and services in Canada -

A business that is registered to collect PST from customers -

Getting Started

Muriels Murals

Toss for Tots

Chai Tea Room

Phoebes Photo Studio

Air Care Services

Helenas Academy

Lime Light Laundry

Flabuless Fitness

Andersson Chiropractic Clinic

Maple Leaf Rags

Truman Tires

Village Galleries

Tesses Tresses

Velocity

Ryders Routes Advanced Premium Features

Able Associates Advanced Premium Features

Filters