F1

Question 1

What is direct tax

Answer 1

Paid to gov by person liable

Question 2

What is indirect tax

Answer 2

Borne by one person but paid and collected by others

Question 3

What is incidence of tax

Answer 3

Distribution of tax burden

Question 4

What is formal incidence

Answer 4

Person with direct contact with tax authroity

Question 5

What is actual incidence

Answer 5

Person who ends up bearing the costs

Question 6

What is a tax base

Answer 6

Identifies what’s Subject to tax

Question 7

What is hypothecation

Answer 7

Certain taxes devoted to certain expenditure

Question 8

What is capital taxes?

Answer 8

Gains made on disposal of investments and other nc assets

Question 9

What is unit taxes?

Answer 9

Based on number or weight of items

Question 10

What is ad valorem taxes?

Answer 10

Based on value of items

Question 11

What are benefits in kind?

Answer 11

Non cash benefits in lieu of cash payment

Question 12

What is tax avoidance?

Answer 12

Tax planning to arrange affairs within the scope of the law to minimise tax liability

Question 13

What is tax evasion

Answer 13

Illegal manipulation of tax system to minimise liability

Question 14

What is balancing allowance

Answer 14

Tax loss on disposal

Question 15

What is balancing charge

Answer 15

Tax profit on disposal

Question 16

What is GAAP

Answer 16

Generally accepted accounting practices
Encompasses rules and procedures necessary to define accepted accounting practice

Question 17

What are the ethical threats?

Answer 17

Self interest
Intimidation
Familiarity
Advocacy
Self review

Question 18

What are the fundamental qualitative characteristics

Answer 18

Relevance
Faithful representation

Question 19

What are the enhancing qualitative characteristics

Answer 19

Compatability
Verifiablity
Timeliness
Understandility

Question 20

What are assets

Answer 20

Present economic resource controlled by entity as a result of a past event

Question 21

What are historical costs

Answer 21

Price paid at acquisition

Question 22

What is current value

Answer 22

Value at measurement date

Question 23

What is IAS 1

Answer 23

Presentation of financial statements

Question 24

What is the going concern

Answer 24

Entity considered to trade for the foreseeable future

Question 25

What is IAS 16

Answer 25

Plant property and equipment

Question 26

What is the cost model

Answer 26

Carrying amount = cost

Question 27

What is revaultion model

Answer 27

Carrying amount = fair value

Question 28

What is IAS 36

Answer 28

Impairment of assets When carrying amount exceeds its recoverable amount

Question 29

What is IFRS 5

Answer 29

Non current assets held for sale and discontinued operations

Question 30

What is iFRS 16

Answer 30

Leases

Question 31

What is a lease

Answer 31

Contract that concerns the right to use an underlying asset for a period of time in exchange for consideration

Question 32

What is lease liability?

Answer 32

Present value of lease payment not yet made

Question 33

What is IAS 2

Answer 33

Inventories

Question 34

What is inventories value at

Answer 34

Lower of cost or net releasable value

Question 35

What two methods are permitted in inventories?

Answer 35

FIFO and AvCO

Question 36

What is IAS 7?

Answer 36

Statement of cash flows

Question 37

What are the three cash flow groups

Answer 37

Operating activities Investing activities Financing activities

Question 38

What is factoring

Answer 38

Outsourcing credit control department to third party

Question 39

What is invoice discounting?

Answer 39

Invoices used as security against which the entity may borrow funds

Question 40

What is a bank loan?

Answer 40

Contractual agreement for a specified sum loaned for a fixed terms at an agreed interest rate

Question 41

What is documentary credit

Answer 41

Issued by bank on behalf of customer authorising supplier to withdraw amount from branches

Question 42

What is working capital

Answer 42

Capital expenditure for conducting day to day operations of an org

Question 43

What is the working capital cycle

Answer 43

Cash Raw materials WIP Finished goods Receivables

Question 44

What is the current ratio

Answer 44

Measures how much of total current assets are financed by current liabilities

Question 45

What is quick ratio

Answer 45

Measures how well current liabilities are covered by liquid assets

Question 46

What is an aggressive policy

Answer 46

Reduced costs by holding low levels of assets

Question 47

What is a Conservative policy

Answer 47

Reduces risk by holding high levels of cash

Question 48

What is a moderate policy

Answer 48

Middle ground balance between cost and risk

Question 49

What is economic order quantity

Answer 49

How many items should be ordered when order is placed

Question 50

What is the optimum reorder level

Answer 50

How many items should be left in inventory when next order is placed

Question 51

What is buffer stock

Answer 51

Stock you hold above and beyond the known demand

Question 52

What is cash forecasts for?

Answer 52

Used to assess operating budgets, plan for cash shortages and surpluses, compare with actual spending