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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

Below are extracts from LLL's financial statements for the year ended 31 December 20X2.

Depreciation of $25,000 was charged on properly, plant and equipment in the year and there were no disposals

What is the cash generated from operations for inclusion in LLL's statement of cash flows for the year ended 31 December 20X2?

Options:

A.

$355 000

B.

$390,000

C.

$415,000

D.

$435,000

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Question 2

Why are excise duties an attractive method of raising tax for governments?

Select TWO that apply.

Options:

A.

Low cost of collection compared to other forms of taxation.

B.

High yields from the tax.

C.

Encourages consumption of products such as alcohol.

D.

Popular form of tax for the tax payer as it can be reclaimed.

E.

Ensures that the tax levied on all taxpayers is the same irrespective of their spending habits.

Question 3

Which of the following is not a possible tax rate structure?

Options:

A.

Progressive

B.

Proportional

C.

Direct

D.

Regressive

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