CIMA Exams Page 3 CIMA Practice Test Questions with Answers. SECTION A 2. 0 MARKSYou are advised to spend no longer than 3. ANSWER ALL TEN SUB QUESTIONS IN THIS SECTIONQuestion One. CR is resident in Country X. CR makes a taxable profit of 7. Equity shareholders pay tax on their dividend income at a rate of 3. If CR and its equity shareholders pay a total of 2. Country X A. The classical system. B. The imputation system. C. The partial imputation system. D. The split rate system2 marks1. Which ONE of the following is NOT a benefit of pay as you earn PAYE method of tax collection A. It makes payment of tax easier for the tax payer as it is in. B. It makes it easier for governments to forecast tax. Activity Based Costing Example Questions Answers' title='Activity Based Costing Example Questions Answers' />C. It benefits the tax payer as it reduces the tax. D. It improves governments cash flow as cash is received2 marks 1. User questions on spirituality, religion,and their answers by Swami Ramswarup. Value Analysis, Functional Analysis, Value Engineering and Target Costing P2 by Norwood Whittle In a previous article I explained the relationship between Kaizen. A field of applied statistics of human research surveys, survey methodology studies the sampling of individual units from a population and the associated survey data. Read our answers to the latest accounting questions asked by users of AccountingCoach. In relation to a Value Added Tax VAT system, which ONE of the following would be classified as the formal incidence of VAT A. The entity submitting a VAT return and making payment to the tax. B. The date the tax is actually. C. The person that pays a retail entity for the goods plus. D. A retail entity paying a wholesale entity for goods plus2 marks1. Which ONE of the following is NOT a reason for governments to set deadlines for filing tax returns and payment of taxes A. To enable governments to enforce penalties for late. B. To ensure tax deducted at source by employers is paid over. C. To ensure tax payers know when they have to make. D. To ensure that the correct amount of tax revenue is2 marks1. UF manufactures clothing and operates in Country X. UF and ZF are both registered for. UF manufactures a batch of clothing and pays expenses taxable inputs at standard rate of 1,0. VAT. UF sells the batch of clothing to a retailer ZF for 2,8. VAT at standard rate. ZF sells the clothing items separately to various customers for a total of 6,9. VAT at standard rate. Calculate how much VAT UF and ZF each has to pay in respect of the above transactions2 marks1. An external auditor has completed an audit and is satisfied that proper records have been maintained and that the financial statements reflect those transactions. Activity Based Costing Example Questions Answers' title='Activity Based Costing Example Questions Answers' />However the auditor has one disagreement with the management of the entity. The disagreement involves the treatment of one large item of expenditure that has been classified by management as an increase in non current assets. The auditor is of the opinion that the item should have been classified as maintenance and charged as an expense to the statement of comprehensive income. The amount is material in the context of the reported profit for the Assuming that the management refuse to change their approach, which ONE of the following modified audit reports should the auditor use A. Emphasis of matter. B. Except for qualification. C. Adverse opinion. D. Disclaimer of opinion2 marks1. Note The terms in which a course is normally taught is at the end of each description FFall, SpSpring, SuSummer. Jump to TN eCampus Courses. THINGS TO CONSIDER BEFORE FILING BANKRUPTCY. What is Bankruptcy 2. What is the difference between Chapter 7 and Chapter 13 3. Should I file Chapter 7 or Chapter 13 Why Economictimes QnA Ask. Learn. Share. Here you can Ask a question, Answer a question or even Debate an answer. It is the place to exchange knowledge nuggets with a. Gravel r v l is a loose aggregation of rock fragments. Gravel is classified by particle size range and includes size classes from granule to boulder. TS purchased 1. 00,0. At the end of the accounting period TS still held the treasury. Which ONE of the following is the correct presentation of the treasury shares in TSs closing statement of financial position in accordance with IAS 3. Financial Instruments Presentation A. As a current asset investment. B. As a non current liability. Costing sheet overhead on procured material, cost component split The countries where cost of sales accounting is the basic accounting principle, cost of. ICWA interview questions and answers for freshers and experienced List of ICWA questions with answers that might be asked during an interview. C. As a non current asset. D. As a deduction from equity2 marks1. Which ONE of the following is NOT a topic included in the International Accounting Standards Boards IASB Framework for the Preparation and Presentation of Financial Statements Framework A. The objective of financial statements. B. Concepts of capital maintenance. C. Regulatory bodies governing financial statements. D. Measurement of the elements of financial statements2 marks1. Which ONE of the following would be regarded as a related party of Z in accordance with IAS 2. Related Parties A. FG is Zs banker and has provided an extensive overdraft facility on favourable terms. There Was An Odd Princess Who Swallowed A Peanut. B. JK is Zs principal customer, accounting for 6. C. MN is Zs marketing director who holds 2. Zs equity. D. QR is Zs main supplier, supplying nearly 5. Zs purchases by2 marks1. Which ONE of the following is NOT included in the definition of an operating segment in accordance with IFRS 8 Operating Segments A. A component of an entity that earns the majority of its revenue from sales to external. B. A component of an entity that engages in business activities from which it may earn revenues and incur. C. A component of an entity whose operating results are regularly reviewed by the entitys chief operating decision maker, to make decisions about resource allocations and assess. D. A component of an entity for which discrete financial information is2 marks Total for Section A 2. SECTION B 3. 0 MARKSYou are advised to spend no longer than 9 minutes on each sub question in this section. ANSWER ALL SIX SUB QUESTIONS IN THIS SECTION 5 MARKS EACHQuestion Twoa ZK is part of a group of entities and has traded profitably for a number of years. During the year to 3. August 2. 00. 9, ZK made a tax adjusted trading loss of 3. In the following year to 3. August 2. 01. 0, ZK made a taxable trading profit of 1. ZK expects to increase taxable trading profits to 5. August 2. 01. 1. ZK does not expect any capital gains or losses in the year to 3. August. Required Explain FOUR methods that a Country can allow to relieve trading losses of an entity and illustrate the effect of each method on ZK for the years ended 3. August 2. 00. 9 to 2. Total for sub question a 5 marksb HW, an entity resident in Country X, owns 4. SV, an entity resident in a foreign country, Country Y. For the year to 3. March 2. 01. 0 SV had taxable profits of 1. On 3. 1 October 2. HW received a dividend of 3,3. SV, the amount received is net of tax of 1. Country X has a double taxation treaty with Country Y. The treaty provides for a group of entities to only be taxed once on each entitys profits. Credit is given for withholding tax and underlying tax paid in other countries, but no refunds are available if a higher rate of tax has been paid. Required Explain the meaning of withholding tax and provide an explanation as to why countries levy withholding2 marksCalculate the amount due to be paid by HW on receipt of this dividend in Country X. Show all3 marksTotal for sub question b 5 marks cRequired Explain the FOUR qualitative characteristics of financial information specified in the IASBs Framework. Total for sub question c 5 marksd HB paid 2. PNs equity shares on 1 September At that date PNs statement of financial position showed the following balances with equity 0. Equity shares of 1 each. Share premium. 60. Retained earnings. PNs net asset values were the same as their book values, except for land which was valued at 7. HB directors estimate that any goodwill arising on the acquisition will have a useful life of 1. Required i Calculate goodwill arising on the acquisition of PN. Explain how HB should record the goodwill in its group financial statements forthe year ended 3. August 2. 01. 0, in accordance with IFRS 3 Business Combinations. Total for sub question d 5 markse HI, a parent entity, is planning to acquire a shareholding in ABC. The following alternative investment strategies are being considered HI can purchase 8. ABC HI can purchase 4. ABC HI can purchase 7. ABC and no preferred. ABC has the following issued share capital 1 Equity shares 1. Preferred Shares 1. Holders of preferred shares do not have any votes at annual general meetings.