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WX is considering an investment in ST.

At 31 December 20X2 ST had the following balances in its statement of financial position:

Which of the following would cause ST to become an associate investment of WX?

A.

WX purchases 15,000 of ST's $1 equity shares and 20,000 of ST's $1 preference shares.

B.

WX purchases 25,000 of ST's $1 equity shares.

C.

WX purchases 75,000 of ST's $1 equity shares.

D.

WX purchases 50,000 of ST's $1 preference shares.

The following information relates to ABC.

Which of the following would be a reason for the movement in the trade receivable days?

A.

A new credit controller was appointed during the year ended 30 June 20X3 who has been chasing customers for payment.

B.

A system of early settlement discount was introduced during the year ended 30 June 20X3 which was taken up by quite a few customers.

C.

One customer who regularly took 120 days to pay their invoices stopped buying goods from ABC during the year ended 30 June 20X3.

D.

It was decided during the year ended 30 June 20X3 to stop undertaking credit checks on new customers.

Which of the following would NOT be a source of taxation rules for a country?

A.

Double tax treaties

B.

Directives from international bodies

C.

International accounting standards

D.

Precedents based on previous legislation

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

A.

A fixed amount of interest is determined for the period of the overdraft

B.

Repayments are scheduled in advance

C.

The amount off overdraft utilised will fluctuate according to the needs off the borrowing entity.

D.

The bank cannot demand repayment of the overdraft before the end of the agreed period.

E.

Interest is charged on the balance outstanding.

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.

Which THREE of the following statements are true?

A.

Tax depreciation replaces accounting depreciation when calculating the taxable profit.

B.

Tax depreciation increases the taxable profit.

C.

Balancing allowances increase the taxable profit.

D.

Balancing charges increase the taxable profit.

E.

Balancing charges reduce the taxable profit.

F.

Balancing allowances reduce the taxable profit.

On 1 July 20X8 JKL has 100 units of inventory, which cost $8 each. The following transactions arose during the month of July:

JKL values inventory using the first in. first out method.

What is the value of JKL's inventory at 31 July 20X8?

Give your answer to the nearest $.

Country X levies a duty on alcoholic drinks. Where the alcohol content is above 40% by volume the duty levied is $5 per 1 litre bottle.

What type of tax is this duty?

A.

Specific unit tax

B.

Ad valorem tax

C.

Direct tax

D.

Single-stage sales tax

KL has S90.000 of plant and machinery which was acquired on 1 June 20X4. Tax depreciation rates on plant and machinery are 20% reducing balance. All plant and machinery was sold for 560,000 on 1 June 20X6

Calculate the tax balancing allowance or charge on disposal tor the year ended 31 May 20X7 and state the effect on the taxable profit.

A.

A balancing allowance of $2,400 reduces taxable profit.

B.

A balancing charge of $2,400 reduces taxable profit.

C.

A balancing charge of $2,400 increases taxable profit.

D.

A balancing allowance of $2,400 increases taxable profit.

Which of the following are techniques that can be used by a company to ensure they receive timely payment of receivables? Select ALL that apply:

A.

Offering cash or early payment discount

B.

Charging interest on late payments

C.

Assessing credit risk of customers before they are given credit

D.

Offering extended credit to return customers

E.

Offering free items