ACCA F6: Capital Allowances! Trivia Questions Quiz
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- 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
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