ACCA F6: Capital Allowances! Trivia Questions Quiz

22 Questions | By LFTC2011 | Updated: Mar 22, 2022 | Attempts: 480

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ACCA F6: Capital Allowances! Trivia Questions Quiz - Quiz

Questions and Answers

1.

Which of the following is not a plant and is considered as building?
- A.
  
  Walls, floors, ceilings, doors, gates, shutters, windows and stairs
- B.
  
  Mains services and systems of water, electricity and gas
- C.
  
  Waste disposal, sewerage and drainage systems
- D.
  
  Sound insulation provided mainly to meet the particular requirements of the trade
2.

Which of the following does not qualify as plant?
- A.
  
  Computer software
- B.
  
  Service agreement for maintenance
- C.
  
  Internet browser
- D.
  
  Soft data
3.

Capital allowance is available at 20% on general pool on:
- A.
  
  Reducing Balance Method
- B.
  
  Straight Line Method
- C.
  
  Machine Hours Method
- D.
  
  Any method acceptable in GAAP
4.

Annual Investment Allowance (AIA) is available to all business of £________.
- A.
  
  50,000
- B.
  
  100,000
- C.
  
  110,000
- D.
  
  1,000,000
5.

Alpha purchased Plant for £120,000. All is subject to AIA. What is the total of Capital Allowances that can be claimed during the year?
- A.
  
  £4,000
- B.
  
  £24,000
- C.
  
  £100,000
- D.
  
  £104,000
6.

If the period of account is 13 months, the AIA will be:
- A.
  
  £100,000
- B.
  
  £105,000
- C.
  
  £108,333
- D.
  
  £110,000
7.

First Year Allowance (FYA) is available on cars below the CO2 emission of _______ g/km or less.
- A.
  
  160
- B.
  
  120
- C.
  
  110
- D.
  
  75
8.

Writing Down Allowance (WDA) on items in the main pool is calculated as:
- A.
  
  No WDA in the year of acquisition of disposal
- B.
  
  Full WDA in the year of acquisition and disposal
- C.
  
  No WDA in the year of acquisition and full WDA in the year of disposal
- D.
  
  Full WDA in the year of acquisition and no WDA in the year of disposal
9.

For short & Long period of accounts, the WDA is:
- A.
  
  Adjusted according to the number of months
- B.
  
  Not adjusted and is always calculated for 12 months
10.

FYA is adjusted for short or long period of account?
- A.
  
  True
- B.
  
  False
11.

Balancing charge arises when at the time of cessation of trade there is ____ balance in the main pool despite all assets being disposed off.
- A.
  
  Positive
- B.
  
  Nil
- C.
  
  Negative
12.

Balancing allowance arises when at the time of cessation of trade there is ____ balance in the main pool despite all assets being disposed off.
- A.
  
  Positive
- B.
  
  Nil
- C.
  
  Negative
13.

In the year of cessation, the following can be claimed?
- A.
  
  AIA, FYA & WDA
- B.
  
  Only AIA
- C.
  
  FYA and WDA
- D.
  
  None of the above
14.

Special Rate Pool attracts 10% WDA and hence are included in the special rate pool. These include:
- A.
  
  Thermal insulation, long-life assets, features integral to a building & cars with CO2 emission over 160g/km
- B.
  
  Heating, Electric & Water Systems, long-life assets, features integral to a building & cars with CO2 emission over 160g/km
- C.
  
  Thermal insulation, long-life assets, features integral to a building & cars with CO2 emission over 161g/km
- D.
  
  Thermal insulation, short-life assets, features integral to a building & cars with CO2 emission over 160g/km
15.

AIA can be applied to the Special Rate Pool assets except for:
- A.
  
  Thermal insulation
- B.
  
  Long-life assets
- C.
  
  Features integral to a building
- D.
  
  Cars with CO2 emission over 160g/km
16.

Long-life assets are the assets with useful life of ___ years or more.
- A.
  
  15
- B.
  
  20
- C.
  
  25
- D.
  
  30
17.

Plants not treated as long-life assets are cars and:
- A.
  
  Plant & Machinery in dwelling houses, showrooms, hotels and offices
- B.
  
  Plant & Machinery in dwelling houses, retail shops, hotels and offices
- C.
  
  Plant & Machinery in dwelling houses, retail shops, showrooms and hotels
- D.
  
  Plant & Machinery in dwelling houses, retail shops, showrooms, hotels and offices
18.

Features integral to building includes:
- A.
  
  Electrical & lighting systems, cold water systems and space/ water heating systems
- B.
  
  Powered system of ventilation, cooling or air conditioning, lifts and escalators
- C.
  
  Both the above
- D.
  
  None of the above
19.

Capital allowances for assets with private use is dealt:
- A.
  
  By keeping in a single asset pool
- B.
  
  By keeping them in special rate pool
- C.
  
  By charging 5% WDA
- D.
  
  By reducing the value of such assets in proportion to private use
20.

A car was purchased on 1.1.2008 with no private use. The maximum WDA that can be claimed is:
- A.
  
  20% of the cost of the car
- B.
  
  20% of the value of the car
- C.
  
  £3,000
- D.
  
  £1,500
21.

For cars purchased after 5 April 2009 with CO2 emission of ____g/km or less, FYA of 100% can be claimed.
- A.
  
  76
- B.
  
  110
- C.
  
  120
- D.
  
  160
22.

If a trader purchases an asset that is intended to be sold within ____ years of the end of the accounting period when it was acquired, the asset can be kept in single asset pool.
- A.
  
  4
- B.
  
  6
- C.
  
  8
- D.
  
  10