Wiki📈 AccountingCore Accounting and Tax PrinciplesKnowledge test

Test on Core Accounting and Tax Principles

Core Accounting & Tax Principles: A Student's Guide

Summary Knowledge test Flashcards Podcast Mindmap

Question 1 of 50%

Is a loan received classified as a financing inflow within the cash flow?

Accounting: VAT, Depreciation and Taxation

20 questions

Question 1: Is a loan received classified as a financing inflow within the cash flow?

A. Ano

B. Ne

Explanation: The study materials explicitly list 'Financing inflows (loan received)' under the Cash flow section, indicating that a loan received is a financing inflow.

Question 2: If a VAT-registered entity purchases a tractor for R1,000,000 plus R150,000 VAT, the actual cost of the tractor recorded, after claiming input VAT back from SARS, is R1,150,000.

A. Ano

B. Ne

Explanation: When a VAT-registered entity claims input VAT back from SARS, the actual cost of the asset is the price excluding VAT. Therefore, the actual cost of the tractor is R1,000,000, not R1,150,000.

Question 3: When a VAT-registered business purchases an asset and claims input VAT back from SARS, the VAT amount is included in the asset's cost for depreciation purposes.

A. Ano

B. Ne

Explanation: If a business is VAT registered and can claim input VAT back from SARS on an asset purchase, the actual cost of the asset is the price before VAT. The study materials explicitly state that VAT should not be included in depreciation if it is claimable.

Question 4: If a company records lower depreciation, will it lead to a decrease in its tax payable?

A. Ano

B. Ne

Explanation: Lower depreciation results in higher profits, which leads to higher tax payable.

Question 5: A higher depreciation expense leads to a lower amount of tax payable.

A. Ano

B. Ne

Explanation: The study materials indicate that higher depreciation results in lower taxable income, which in turn leads to lower tax payable.

Other materials

Summary Knowledge test Flashcards Podcast Mindmap

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Wiki📈 AccountingCore Accounting and Tax PrinciplesKnowledge test

Test on Core Accounting and Tax Principles

Core Accounting & Tax Principles: A Student's Guide

Summary Knowledge test Flashcards Podcast Mindmap

Question 1 of 50%

Is a loan received classified as a financing inflow within the cash flow?

Accounting: VAT, Depreciation and Taxation

20 questions

Question 1: Is a loan received classified as a financing inflow within the cash flow?

A. Ano

B. Ne

Explanation: The study materials explicitly list 'Financing inflows (loan received)' under the Cash flow section, indicating that a loan received is a financing inflow.

Question 2: If a VAT-registered entity purchases a tractor for R1,000,000 plus R150,000 VAT, the actual cost of the tractor recorded, after claiming input VAT back from SARS, is R1,150,000.

A. Ano

B. Ne

Question 3: When a VAT-registered business purchases an asset and claims input VAT back from SARS, the VAT amount is included in the asset's cost for depreciation purposes.

A. Ano

B. Ne

Question 4: If a company records lower depreciation, will it lead to a decrease in its tax payable?

A. Ano

B. Ne

Explanation: Lower depreciation results in higher profits, which leads to higher tax payable.

Question 5: A higher depreciation expense leads to a lower amount of tax payable.

A. Ano

B. Ne

Explanation: The study materials indicate that higher depreciation results in lower taxable income, which in turn leads to lower tax payable.

Other materials

Summary Knowledge test Flashcards Podcast Mindmap

← Back to topic