ACCA F6 Chapter 7

16 Questions | Total Attempts: 67

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ACCA Quizzes & Trivia

Test of ACCA F6 Taxation Chapter 7: Taxation (Computing Trading Income)


Questions and Answers
  • 1. 
    Profit from sale of 34,000,000 yards of aircraft linen will be considered as capital gains rather than Trade.
    • A. 

      True

    • B. 

      False

  • 2. 
    Alpha purchased a rice mill. This is the fourth time that he has acquired the mill and sold the previous three. This is a trade
    • A. 

      True

    • B. 

      False

  • 3. 
    A builder builds and sells houses. Few of those are retained for longer period. This is capital gain rather than trading as he holds few houses.
    • A. 

      True

    • B. 

      False

  • 4. 
    Alpha purchases expensive jewelry from his pension receipt but sold shortly afterwards. This is a trade.
    • A. 

      True

    • B. 

      False

  • 5. 
    An individual once bought a crate of whisky and then sold it through an agent, as other do, is not a trade.
    • A. 

      True

    • B. 

      False

  • 6. 
    A group of accountants bought, blended and recasked a quantity of brandy. Later they sold it. It was not a trade.
    • A. 

      True

    • B. 

      False

  • 7. 
    Alpha inherited a home from his father and sold the same immediately. This is a trade.
    • A. 

      True

    • B. 

      False

  • 8. 
    Alpha paid a parking fine of £23 when on a business trip. The fine is deductible expenditure for Alpha Traders.
    • A. 

      True

    • B. 

      False

  • 9. 
    Alpha paid parking fine for his employee BETA when he was on business visit. The fine deductible.
    • A. 

      True

    • B. 

      False

  • 10. 
    Cost of initial repair to improve an asset recently acquired to make it fit to earn profits is deductible expenditure.
    • A. 

      True

    • B. 

      False

  • 11. 
    Customer was injured by a falling chimney and paid damages. The cost is not deductible.
    • A. 

      True

    • B. 

      False

  • 12. 
    A carpenter claimed 30p lunch cost as expense as he had to pay 40p rather than 10p for lunch when he was out of city. The excess is deductible expenditure.
    • A. 

      True

    • B. 

      False

  • 13. 
    A company pays £2,000 as annual lease charge for a car with CO2 emission of 155g/km. The cost is fully deductible.
    • A. 

      True

    • B. 

      False

  • 14. 
    A company pays £2,000 as annual lease charge for a car with CO2 emission of 155g/km. The cost is fully deductible.
    • A. 

      True

    • B. 

      False

  • 15. 
    A banker working in the branch pays £225 as his annual subscription to ACCA. The amount reimbursed by the bank. It is not a deductible expenditure for the bank.
    • A. 

      True

    • B. 

      False

  • 16. 
    Alpha commences trade on 1.1.2102. He incurred £12,000 expense to buy printing machinery that he now uses for trade on 1.1.2004. The expenditure will not be treated as being made on the first day of the commencement of trade.
    • A. 

      True

    • B. 

      False