ACCA F6: Capital Allowances! Trivia Questions Quiz

  • ACCA
  • F6
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1. For short & Long period of accounts, the WDA is:

Explanation

Explanation: WDA is always adjusted according to the duration of the period of account.

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About This Quiz
ACCA F6: Capital Allowances! Trivia Questions Quiz - Quiz

This ACCA F6 trivia quiz focuses on Capital Allowances, testing knowledge on plant and building classifications, qualifying expenses, and calculation methods like AIA. It is essential for finance professionals preparing for ACCA certification.

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2. Balancing allowance arises when at the time of cessation of trade there is ____ balance in the main pool despite all assets being disposed off.

Explanation

Explanation: Balancing allowance means that after disposal and WDAs, there is still balance remaining in the main pool hence lesser WDAs are claimed. This will be treated as expense.

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3. If the period of account is 13 months, the AIA will be:

Explanation

Explanation: £100,000 AIA is for 12 months period and is adjusted accordingly.

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4. FYA is adjusted for short or long period of account?

Explanation

Explanation: FYA is not adjusted for short and long period of accounts.

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5. Which of the following does not qualify as plant?

Explanation

Explanation: Computer software and data purchased qualifies as Plant & Machinery and not the hardware.

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6. AIA can be applied to the Special Rate Pool assets except for:    

Explanation

Explanation: AIA cannot be applied to cars.

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7. Capital allowance is available at 20% on general pool on:

Explanation

Explanation: Only reducing balance method is allowed.

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8. For cars purchased after 5 April 2009 with CO2 emission of ____g/km or less, FYA of 100% can be claimed.

Explanation

Explanation: 100% FYA can be claimed in respect of cars purchased from April 2009 with CO2 emission of 110g/km or less. If full FYA is not claimed, the remaining balance is transferred to the general pool.

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9. Writing Down Allowance (WDA) on items in the main pool is calculated as:

Explanation

Explanation: In the year in which the asset is acquired, Full WDA is provided while Nil in the year of disposal, irrespective of how many months the asset was used.

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10. Annual Investment Allowance (AIA) is available to all business of £________.

Explanation

Explanation: The allowance is available for a period of 12 months of £100,000.

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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.

Explanation

Explanation: Balancing charge means that after disposal and WDAs, there is a negative balance in the main pool hence excess WDAs are claimed. This will be a negative expense.

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12. Features integral to building includes:

Explanation

Explanation: Electrical & lighting systems, cold water systems, space/ water heating systems, powered system of ventilation, cooling or air conditioning, lifts and escalators are features considered integral to building.

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13. Long-life assets are the assets with useful life of ___ years or more.

Explanation

Explanation: Rule is 25 years.

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14. In the year of cessation, the following can be claimed?

Explanation

Explanation: No allowance can be claimed in the year of cessation.

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15. Special Rate Pool attracts 10% WDA and hence are included in the special rate pool. These include:

Explanation

Explanation: Thermal insulation, long-life assets, features integral to a building & cars with CO2 emission over 160g/km attract 10% WDA and are included in the Special Rate Pool.

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16. First Year Allowance (FYA) is available on cars below the CO2 emission of _______ g/km or less.

Explanation

Explanation: Cars with CO2 emission of 110 g/km or less are entitled to the FYA.

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17. Plants not treated as long-life assets are cars and:

Explanation

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

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18. 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.

Explanation

Explanation: Assets purchased after 5 April 2011 intended to be sold within 8 years after the end of accounting period of purchase can be elected as short life asset and kept in single asset pool.

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19. Capital allowances for assets with private use is dealt:

Explanation

Explanation: Assets with private use are kept in a single asset pool.

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20. 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?

Explanation

Explanation: The Annual Investment Allowance of £100,000 and 20% allowance of remaining £20,000 (20,000 X 20% = 4,000) makes it £104,000.

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21. Which of the following is not a plant and is considered as building?

Explanation

Explanation: Statute describes this as plant.

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22. A car was purchased on 1.1.2008 with no private use. The maximum WDA that can be claimed is:

Explanation

Explanation: 20% WDA is applied on cars purchased before April 2009 with a limit of £3,000 WDA.

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For short & Long period of accounts, the WDA is:
Balancing allowance arises when at the time of cessation of trade...
If the period of account is 13 months, the AIA will be:
FYA is adjusted for short or long period of account?
Which of the following does not qualify as plant?
AIA can be applied to the Special Rate Pool assets except for:  ...
Capital allowance is available at 20% on general pool on:
For cars purchased after 5 April 2009 with CO2 emission of ____g/km or...
Writing Down Allowance (WDA) on items in the main pool is calculated...
Annual Investment Allowance (AIA) is available to all business of...
Balancing charge arises when at the time of cessation of trade there...
Features integral to building includes:
Long-life assets are the assets with useful life of ___ years or more.
In the year of cessation, the following can be claimed?
Special Rate Pool attracts 10% WDA and hence are included in the...
First Year Allowance (FYA) is available on cars below the CO2 emission...
Plants not treated as long-life assets are cars and:
If a trader purchases an asset that is intended to be sold within ____...
Capital allowances for assets with private use is dealt:
Alpha purchased Plant for £120,000. All is subject to AIA. What...
Which of the following is not a plant and is considered as building?
A car was purchased on 1.1.2008 with no private use. The maximum WDA...
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