F1 Exam Dumps : Financial Reporting

The government can budget its cash flows more easily.

The risk of employees defaulting on the payment of tax due is reduced

The tax authority deals directly with the employees rather than the employers.

The tax is paid after the employee completes a tax return.

Most of the administrative costs of collecting the tax are borne by the tax authority

Delay the next entertainment event for staff until the next financial year so that the $150 limit is not breached.

Inflate the number of employees that are recorded as being entertained so that the overall employee entertainment bill falls below $150 a head.

Split any gifts made so that any gift does not exceed $10 on an individual basis.

Ensure that employees reimburse their employers for any entertaining incurred which exceeds the $150 a head limit

Record customers who do not meet the overseas criteria as overseas customers.

Deduct all entertaining expenses without any analysis of what the entertaining relates to.

Postponing non essential capital expenditure

Increasing the working capital cycle by making payments to suppliers early

Taking advantage of bulk discounts offered on inventory purchases

Reducing levels of inventory by implementing a just in time system for purchasing

Paying a bonus to staff for exceptional performance