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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

Which THREE of the following statements are true?

Options:

A.

Tax depreciation replaces accounting depreciation when calculating the taxable profit.

B.

Tax depreciation increases the taxable profit.

C.

Balancing allowances increase the taxable profit.

D.

Balancing charges increase the taxable profit.

E.

Balancing charges reduce the taxable profit.

F.

Balancing allowances reduce the taxable profit.

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Question 2

Country X levies a duty on alcoholic drinks. Where the alcohol content is above 40% by volume the duty levied is $5 per 1 litre bottle.

What type of tax is this duty?

Options:

A.

Specific unit tax

B.

Ad valorem tax

C.

Direct tax

D.

Single-stage sales tax

Question 3

An entity has an inventory holding period of 52 days.

This means that the inventory:

Options:

A.

takes 52 days to arrive after it has been ordered.

B.

stays in the entity's warehouse for an average of 52 days before it is sold.

C.

takes 52 days to manufacture.

D.

takes 52 days to be paid for.

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