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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

Question 1

For an incorporated business, the taxation of trading income is a form of direct taxation which is based on:

Options:

A.

business profits where the tax is paid by the shareholders to the tax authorities.

B.

dividends paid to shareholders where the tax is paid by the business to the tax authorities.

C.

dividends paid to shareholders where the tax is paid by the shareholders to the tax authorities.

D.

business profits where the tax is paid by the business to the tax authorities.

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Question 2

To apply the fundamental principles of the Code of Ethics, existing and potential threats to the entity first need to be identified and evaluated.

Which THREE of the following are identified in the Code as threats?

Options:

A.

Confidentiality threat

B.

Self-interest threats

C.

Self-review threats

D.

Familiarity threats

E.

Integrity threats

F.

Objectivity threats

Question 3

The legislation in Country S provides for an indexation allowance in the calculation of capital tax. STU operates in Country S where the indexation factor for the period 1 January 20X1 to 31 December 20X6 is 20%

STU purchased a building for $64,000 on 1 January 20X1, incurring legal fees of $4,000. STU sold the building for $86,000 on 31 December 20X6 before selling fees of $3,500

What is the chargeable capital gam arising on STU's disposal of the building?

Options:

A.

S11,600

B.

$5,700

C.

S900

D.

$200