Essential Book Keeping - Qp4
10 Questions
| Attempts: 118
Questions and Answers
- 1.VAT is a direct tax which enables the Government to tax consumer expenditure on a very wide scale.
- A.
True
- B.
False
- 2.VAT can be described as: “A tax on final consumer spending, collected in stages, when goods change hands or services are performed”.
- A.
True
- B.
False
- 3.When sales turnover reaches a certain level, the business has to register with HMRC through their local VAT office. The registration threshold from April 2006 was ______.
- A.
£41,000
- B.
£51,000
- C.
£61,000
- D.
£71,000
- 4.In Britain, there are currently four broad categories of VAT. These are:
- A.
Standard Rate
- B.
Standard Term
- C.
Zero Term
- D.
Zero Rate
- E.
Exempt Provides
- F.
Exempt Supplies
- G.
Special Higher Rate
- H.
Special Lower Rate
- 5.
- A.
True
- B.
False
- 6.The main items of information required to complete the VAT 100 form are: (Select three)
- A.
Output tax charged to customers
- B.
Input tax charged by suppliers
- C.
Value of sales, inclusive of VAT
- D.
Value of purchases, inclusive of VAT
- E.
Sales and purchase information relating to the EU.
- 7.Under the Cash Accounting scheme, VAT is accounted for on the basis of cash paid and cash received in a period.
- A.
True
- B.
False
- 8.To qualify for the flat rate VAT scheme, a business must have: (Select two)
- A.
They must have been registered for 12 months, and
- B.
They must have a taxable turnover below £825,000
- C.
No more than £150,000 taxable supplies, and
- D.
No more than £187,500 total business income.
- 9.Taxable persons must keep their records and accounts up-to-date and are legally obliged to preserve them, with all supporting receipts etc., for a period of seven years.
- A.
True
- B.
False
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