Cima F1 Exam Question No 14

Question No 14:

Define the meaning of the term “an indirect tax”?

An indirect tax is one that is levied on one person or entity with the intention that the tax burden is passed on to another person/entity.

Cima F1 Exam Question No 13

Question No 13:

What is Tax on trading income?
Taxable income =
Accounting profit
- income exempt from tax or taxed under other rules
+ disallowable expenses (entertaining customers, gift aid payments, political donations in the UK)
+ accounting depreciation
- tax depreciation

Cima F1 Exam Question No 12

Question No 12:

What are the 2 types of direct taxes?

Answer:

• Tax on trading income
• Capital tax

Cima F1 Exam Question No 11

Question No 11:

What is Tax bases?

Answer:

• Income or profits (income and corporation tax in the UK)
• Assets (capital gains tax)
• Consumption (sales tax)