Thursday 25 February 2016

Cima F1 Exam Question No 40

Question No 41:

An entity earns a profit of $60,000 for the year to 31 March 2012. The entity is assessed as owing $15,000 tax for the year. Which ONE of the following types of tax would best describe the tax due?

A.
Capital tax.
B.
Income tax.
C.
Wealth tax.
D.
Consumption tax.

Answer: B

Thursday 18 February 2016

Cima F1 Exam Question No 39

Question No 39:

Which ONE of the following events would result in an asset being recognised in KJH’s statement of financial position at 31 January 2012?

A.
KJH spent $50,000 on an advertising campaign in January 2012. KJH expects the advertising to generate additional sales of $100,000 over the period February to April 2012.
B.
KJH is taking legal action against a contractor for faulty work. Advice from its legal team is that it is likely that KJH will receive $250,000 in settlement of its claim within the next 12 months.
C.
KJH purchased the copyright and film rights to the next book to be written by a famous author for $75,000 on 1 March 2011.
D.
KJH has developed a new brand name internally. The directors value the brand name at $150,000.

Answer: A

Thursday 11 February 2016

Cima F1 Exam Question No 38

Question No 38:

Which ONE of the following would be regarded as a related party of CXZ?

A.
The wife of CXZ’s finance director.
B.
CXZ’s main supplier, supplying approximately 35% of CXZ’s purchases.
C.
CXZ’s biggest customer, providing 60% of CXZ’s annual revenue.
D.
CXZ’s banker providing CXZ with an overdraft facility and a short-term loan at market rates.

Answer: A

Thursday 4 February 2016

Cima F1 Exam Question No 37

Question No 37:

Which ONE of the following defines the meaning of “hypothecation”?

A.
A new tax law has to be passed each year to allow taxes to be legally collected.
B.
The difference between the total amount of tax due to be paid and the amount actually collected by the tax authority.
C.
Tax is deducted from amounts due before they are paid to the recipient.
D.
The products of certain taxes are devoted to specific types of public expenditure.

Answer: D