ACCA F6: Capital Allowances! Trivia Questions Quiz

22 Questions | Total Attempts: 217

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ACCA F6: Capital Allowances! Trivia Questions 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