View the step-by-step solution to:


Gordon Enterprise Ltd. is registered for GST. In May, Gordon collected $10,200 of GST from its customers while it

paid $7,600 of GST on its purchases. Which of the following is true?

B. Gordon's financial position is $10,200 higher due to collecting GST on its purchases

D. Gordon's financial position is not affected as GST is a flow through tax which will require Gordon to pay the net balance of $2,600 to the CRA

C. Gordon's financial position is $2,600 higher due to net impact of collecting and paying GST

A. Gordon's financial position is $7,600 lower due to paying GST on its purchases

Top Answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question