Cima F1 Exam Question No 44

Question No 44:

(i) Power to arrest individuals.
(ii) Power of entry and search of premises.
(iii) Power to exchange information with other tax authorities.
(iv) Power to confiscate assets of the entity.

Which TWO of the above are statutory powers that a tax authority may be granted to ensure compliance with tax regulations?
 
A. (i) and (iii)
B. (i) and (iv)
C. (ii) and (iii)
D. (ii) and (iv)

Answer: C

Cima F1 Exam Question No 43

Question No 43:

A withholding tax is?

A. Tax deducted at source before payment to a recipient in a foreign country.
B. Tax on profits that is then paid out net as a dividend to equity shareholders.
C. Tax paid to local tax authorities with an amount withheld from payment.
D. Tax withheld from employees’ salaries with salaries paid to them net of tax.

Answer: A

Cima F1 Exam Question No 42

Question No 42:

Countries are subject to a variety of economic, social and political factors. In some countries
accounting rules are largely driven by taxation laws. The legal system in these countries is
known as:

A. Case law
B. Common law
C. Code law
D. Tax law

Answer: C

Cima F1 Exam Question No 41

Question No 41:

IAS 18 Revenue sets out criteria for the recognition of revenue from the sale of goods. Which ONE of the following is NOT a criterion specified by IAS 18 for recognising revenue
from the sale of goods?

A. The seller no longer retains any influence or control over the goods.
B. The cost to the seller can be measured reliably.
C. The buyer has paid for the goods.
D. The significant risks and rewards of ownership have been transferred to the buyer.

Answer: C

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

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

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