QUESTION: 49

AA manufactures computers. These are sold to BB at $100 a computer plus a 5% sales tax. BB subsequently sells the computers to CC for $200 a computer plus a 5% sales tax. C sells the computers to customers at $300 a computer plus a 5% sales tax.
The total tax received by the tax authority is $30.
Which type of tax is described above?

Single-stage sales tax
Value added tax
Retail tax
Multi-stage cumulative sales tax

Answer(s): D

Reveal Solution Next Question

QUESTION: 50

The external auditors have completed their audit and have discovered a material but not pervasive error in the financial statements of JK.

The directors of JK have refused to change the financial statements.
What type of modified audit report should be issued?

Disclaimer of opinion
Emphasis of matter opinion
Adverse opinion
Qualified opinion

Answer(s): D

Reveal Solution Next Question

QUESTION: 51

HOTSPOT (Drag and Drop is not supported)
The auditor has identified a material but not pervasive mis-statement whilst undertaking the external audit of an entity's financial statements.
This will result in a modified audit report with the opinion being .

See Explanation section for answer.

Answer(s): A

Explanation:

Reveal Solution Next Question

QUESTION: 52

MN recently took out a 5 year term loan to buy raw materials to take advantage of a supplier's bulk discount that had been offered to them.
What approach to financing working capital has MN undertaken?

Aggressive
Moderate
Conservative
Permanent

Answer(s): C

Reveal Solution Next Question

Free F1 Financial Reporting Exam Braindumps (page: 13)

QUESTION: 49

QUESTION: 50

QUESTION: 51

Explanation:

QUESTION: 52