Thursday, 14 April 2016

Cima F1 Exam Question No 47

Question No 47:

Which of the following is the correct meaning of “rollover relief”?

A trading loss can be carried forward and used to reduce tax in a future profitable year.
A capital loss incurred on the disposal of an asset can be carried forward to a future tax year.
An entity ceasing to trade, carrying back a trading loss to set off against previous years’ profits.
A gain arising from the sale of an asset is deferred provided the entity reinvests the proceeds of the sale in a replacement asset.

Answer: D

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