ACCOUNTING 234 Core 1 Quiz 8 Questions with verified Answers 2024

ACCOUNTING 234 Core 1 Quiz 8 Questions with verified Answers 2024 1. A personal income tax client of your firm has decided to set up a small busi- ness selling semi-precious gemstones, beads, and jewelry-making supplies. The estimated sales for the first year of operations are $25,000. Therefore, the business does not have to collect and remit GST to the Canada Revenue Agency (CRA). What is the advantage to the client of registering for a GST account before the store's annual sales reach $30,000? a) The business income will be taxed at a lower rate. b) The business can charge GST and not have to remit the GST collected to the CRA. c) The business can recover GST paid on qualifying purchases, including startup costs. d) The business will receive priority treatment in dealing with the CRA.-- correct answer -- The business can recover GST paid on qualifying purchases, including startup costs.