ACCA F6: Can You Pass This Taxation Test? Trivia Quiz

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  • 1/11 Questions

     _____________ is an example of indirect tax.

    • Income tax
    • Corporation tax
    • National insurance
    • Value added tax
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About This Quiz

Challenge your knowledge of UK taxation with the ACCA F6 quiz! Test your understanding of tax aims, efficiency, tax types, and specific tax examples like VAT and inheritance tax. Ideal for finance professionals and students preparing for ACCA certification.

ACCA F6: Can You Pass This Taxation Test? Trivia Quiz - Quiz

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  • 2. 

     _______________ is not a tax imposed in UK.

    • Sales tax

    • Capital gains tax

    • Income tax

    • Corporation tax

    Correct Answer
    A. Sales tax
    Explanation
    Sales tax is applied in UK as "Value Added Tax". All other taxes are impose din UK.

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  • 3. 

    The administrative function of collection of tax is undertaken by ____________.

    • Revenue and Customs Prosecution Office

    • Receivables management officers

    • HMRC accounts office

    • HMRC

    Correct Answer
    A. HMRC
    Explanation
    A. Revenue and customs prosecution office provides legal advise and institute and conduct criminal prosecutions in England and Wales where there has been an investigation by HMRC.

    B. Officers who collect may be referred to as "Receivable Management Officers"

    C. Refers unpaid amount to "Receivable Management Officers"

    D. Correct: The administrative function for the collection of tax is undertaken by Her Majesty's Revenue and Customs.

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  • 4. 

    Which of the following is the aim of taxation to discourage:

    • Savings

    • Donation to Charity

    • Motoring

    • Investment in Plant & Machinery

    Correct Answer
    A. Motoring
    Explanation
    A. Certain savings are tax free hence the taxation encourages savings.
    B. Charitable donations are supported under Gift Aid Donations and Payroll Deduction Scheme
    C. Correct: Motoring in respect of CO2 emission of cars is taxed and hence discouraged
    D. Investment in P&M for business use is favored in Taxation

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  • 5. 

     __________ is an example of capital tax.

    • Inheritance tax

    • Corporation tax

    • Income tax

    • National insurance

    Correct Answer
    A. Inheritance tax
    Explanation
    Inheritance and capital gains taxes are capital taxes and corporation tax, income tax and national insurance are revenue taxes.

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  • 6. 

    The complex cases are heard by __________.

    • First Tier tribunal

    • Second Tier Tribunal

    • Upper tribunal

    • Appeal Tribunal

    Correct Answer
    A. Upper tribunal
    Explanation
    First Tier tribunal caters most cases except for complex cases which are heard by the upper tier tribunal which also caters for appeals against the decision of first tier tribunal.

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  • 7. 

     ___________ are on particular types of business.

    • Statements of practice

    • Business economic notes

    • Internal guidance

    • Working together

    Correct Answer
    A. Business economic notes
    Explanation
    Business economic notes describe tax law regarding particular businesses (like education)

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  • 8. 

    An agreement between UK government and USA government regarding taxation of individual resident in UK and earning from USA is called _______________.

    • Double income treaty

    • Double taxation relief

    • Double taxation treaty

    • Double taxation ACT

    Correct Answer
    A. Double taxation treaty
    Explanation
    Double taxation treaty is a specific agreement signed between two countries. DTR or Double Taxation Relief is available when there is no Double taxation treaty.

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  • 9. 

    HMRC issues ______________ setting out how they intend to apply the law.

    • Acts of parliament

    • Statements of practice

    • Explanatory leaflets

    • Revenue and customs brief

    Correct Answer
    A. Statements of practice
    Explanation
    Acts of parliament is statute. Statements of practice express how HMRC intends to apply law. Explanatory leaflets explain various rules. Revenue and customs brief gives view point of HMRC on certain issues.

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  • 10. 

    Taxation is _____________ where the cost of collection of taxes is relatively lower as compared to the taxes.

    • Effective

    • Economic

    • Electric

    • Efficient

    Correct Answer
    A. Efficient
    Explanation
    Efficient taxation means cost of collection is minimal against the tax collected.

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  • 11. 

    A tax collected in the form of TV license fees of GBP 50 per year is an example of ______ tax.

    • Flat

    • Progressive

    • Regressive

    • Road

    Correct Answer
    A. Regressive
    Explanation
    A. Flat tax is the t ax applied at same rate according to income of individual.
    B. Progressive tax is the tax charged at higher rates as a person's income increase.
    C. Correct: Tax collected as a percentage of income of an individual as the income increases.
    D. Road tax is a type of tax levied on motor owners.

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  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 11, 2012
    Quiz Created by
    LFTC2011
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