F1 Exam Dumps - CIMA Operational Questions and Answers

XYZ operates in Country A where tax rules state that entertaining costs and donations to political parties are disallowable for tax purposes.

XYZ calculated both its accounting and taxable profits for the year ended 31 December 20X2 after deducting $10,000 of entertaining costs.

It is considering what impact the ruling that "entertaining costs are disallowable for tax purposes" will have on its two profit figures.

Which of the following correctly states the impact of the ruling on the profits already calculated?

Which TWO of the following are implications of employee income tax being paid to the tax authority through a Pay-As-You-Earn scheme?

STU has a non-current asset which originally cost $250,000, has an expected life of 8 years and an estimated residual value of $25,000. The asset is depreciated at 25% a year on a reducing balance basis On 1 July 20X5 the accumulated depreciation for this asset is $109,375

What is the depreciation charge for the year ending 30 June 20X6?

Give your answer to the nearest whole number.

On 1 January 20X2 an entity began work on constructing a factory. It purchased the land for $14 million, built the factory buildings for $11 million and installed plant and equipment for $7 million. The project was completed on 31 December 20X3 when the factory was deemed ready to use, however, the factory did not start operations until 1 June 20X4.

To fund the project the entity borrowed $25 million on 1 January 20X2, with interest at 10% per year.

The loan was repaid in full on 31 December 20X4.

Calculate the total amount to be added to the cost of property, plant and equipment in respect of the above development.

Give your answer to the nearest $ million.

When calculating the gam chargeable to tax on the disposal of a building, which of the following would NOT be an allowable deduction?

CDE has been offering its customers a 50-day credit period, but now wants to improve its cash flow.

CDE is proposing to offer a 2% discount for payment in 20 days. "

Assume a 365-day year and an invoice value of $100

Which of the following is the effective annual interest rate CDE will incur for this action?

Which TWO of the following are features of a bank overdraft?

Which of the following does the phrase 'events after the reporting period' refer to?

Corporate governance is the means by which an entity is operated and

Which of the following methods could be used by a tax authority to reduce tax evasion and avoidance?