BT - The Basis of Accounting

Question 1

Introduction

Financial Statements Compromise:

Answer 1

• A Profit and Loss Account;
• A Balance Sheet.

Question 2

Introduction

Net Profit is The Starting Point for:

Answer 2

Calculating Trading Profits for Tax Purposes.

Question 3

The Accruals Basis

The Accruals Basis is Where:

Answer 3

Income and Expenses Relate to an Accounting Period.

Question 4

Depreciation & Taxation

How is Depreciation Treated Under Tax Legislation?

Answer 4

As a Disallowed Expense (Capable of Manipulation).

Replaced by Capital Allowances.