1) Features of taxation and the regulatory environment

Question 1

Direct tax (define + 2 examples)

Answer 1

Tax paid directly to authorities by person/entity liable for them (e.g. income tax, capital gains tax)

Question 2

Indirect tax (define + example)

Answer 2

Taxes collected and paid by one party (the formal incidence) but for whom the cost is actually borne by another party (the actual incidence) (e.g. VAT)

Question 3

CIMA ethics fundamental principles?

Answer 3

PICCO
Professional behaviour
Integrity
Competence & due care
Confidentiality
Objectivity

Question 4

5 threats to CIMA ethical principles?

Answer 4

1) Self-interest
2) Self-review
3) Advocacy threat
4) Familiarity
5) Intimidation

Question 5

4 key aspects of good corporate governance

Answer 5

Transparency
Independence
Accountability
Integrity

Question 6

Define an Asset

Answer 6

• Present economic resource
• Controlled
• Past event

Question 7

Define a Liability

Answer 7

• Present obligation
• Transfer of an economic resource
• Past events

Question 8

Equity, define

Answer 8

Residual interest in assets less liabilities