Understanding GST Reporting on a Cash Basis: Impact of

School: Central Academy - Course: HISTORY 266 - Subject: Accounting

Ross is a professional animal trainer and his business is registered for GST. On December 5th, Ross conducted an intensive training day for the employees of the local vet hospital. Ross issued the invoice on the same day, payable within 30 days. The vet hospital paid the invoice on 2nd January. In which quarter would Ross record the GST impact of this transaction if he reports GST on a Cash basis? Select one: a. December b. February c. January d. March Correct Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text Ross is a professional animal trainer and his business is registered for GST. On December 5th, Ross conducted an intensive training day for the employees of the local vet hospital. Ross issued the invoice on the same day, payable within 30 days. The vet hospital paid the invoice on 2nd January. In which quarter would Ross record the GST impact of this transaction if he reports GST on a Non-cash basis? Select one: a. January b. December Correct c. February d. March Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text Behavioural Practice Pty Ltd is a consulting and mediation service and is registered for GST. In August, the owner placed an order to purchase new lounge chairs for the consulting room. The lounge chairs will be delivered in October. The owner of Behavioural Practice Pty Ltd has taken advantage of a 25% discount on the cost for paying upfront at the time of order. In which quarter would the company record the GST impact of this transaction if it reports GST on a Cash basis? Select one: a. August

b. October c. September Correct d. December Question 4 Correct Mark 1.00 out of 1.00 Flag question Question text All businesses with a GST turnover of less than $10 million are eligible for Simpler BAS, however organisations with a GST turnover of $10 million or more are required to use the full reporting method. Select one: True Correct False Question 5 Correct Mark 1.00 out of 1.00 Flag question Question text Sports Enigma sells health supplements to small retail supplement suppliers across Australia. Sports Enigma are registered for GST and report on a Non-cash basis. On 31st March, Fanatical Fitness Freaks (FFF) placed an order with Sports Enigma for the supply of stock. Due to high demand, Sports Enigma were unable to deliver the stock until 28th June. On 3rd July the accounts manager of Sports Enigma realised that a sales invoice had not yet been issued to FFF and arranged for it to be done the same day. FFF paid the invoice on 7th October. In which quarter would FFF record the GST impact of this transaction if it reports on a Cash basis? Select one: a. March b. December Correct c. June d. September