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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

Question 1

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

Options:

A.

Progressive

B.

Proportional

C.

Direct

D.

Regressive

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Question 2

Identify which of the following are powers that a government would typically grant it's tax authority by placing the appropriate response beside each power.

Options:

Question 3

Country A permits the following deductions in an entity's annual corporate income tax return in relation to entertaining expenses and gifts;

1 Employee entertaining up to a value of $150 a head

2 Entertaining of overseas customers.

3 Individual gifts not to exceed $10 in value

Which THREE of the following actions would be regarded as tax evasion?

Options:

A.

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

B.

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

C.

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

D.

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

E.

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

F.

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