Free F1 Exam braindumps download (F1 exam dumps Free)

Which of the following is NOT a feature of a multi-stage sales tax?

The entire tax burden is usually passed to the final consumer.
Tax is charged each time a product is sold in the chain from manufacturer through to retailer.
Tax is applied at the retail level only and not at production level.
Credit may not be allowed for taxes paid on sales within the chain from manufacturer through to retailer.

Answer(s): C

Why are excise duties an attractive method of raising tax for governments? Select TWO that apply.

Low cost of collection compared to other forms of taxation.
High yields from the tax.
Encourages consumption of products such as alcohol.
Popular form of tax for the tax payer as it can be reclaimed.
Ensures that the tax levied on all taxpayers is the same irrespective of their spending habits.

Answer(s): A,B

Which of the following would NOT be assessed for tax under a Pay-As-You-Earn system?

Answer(s): D

Which of the following is NOT a type of supply for value added tax (VAT)?

Answer(s): A

Which of the following is a feature of value added tax (VAT)?

Only registered entities can charge VAT on sales or recover VAT paid on purchases.
The value of all supplies must be taken into account when determining whether the registration threshold has been exceeded.
Entities cannot register for VAT if the value of their taxable supplies is below the registration threshold.
Entities that make only standard-rated or zero-rated supplies have their right to recover input tax restricted.

Answer(s): A

Free F1 Exam Braindumps Financial Reporting Questions 41–45 (page: 10)