QUESTION: 81

In 20X4, DEF closed its business having made a trading loss of $160,000. In DEF's country of residence, trading losses may be carried back three years on a LIFO basis.
The profits for the last four years of trading were:

What are the taxable profits or losses for years 20X1 and 20X2?

20X1 $10,000, 20X2 $113,000
20X1 $143,000, 20X2 $ nil
20X1 $150,000, 20X2 $133,000
20X1 $150,000, 20X2 $nil

Answer(s): B

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QUESTION: 82

HOTSPOT (Drag and Drop is not supported)
The Code of Ethics lists five fundamental principles. One of these is.

See Explanation section for answer.

Answer(s): A

Explanation:

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QUESTION: 83

To apply the fundamental principles of the Code of Ethics, existing and potential threats to the entity first need to be identified and evaluated.
Which THREE of the following are identified in the Code as threats?

Confidentiality threat
Self-interest threats
Self-review threats
Familiarity threats
Integrity threats
Objectivity threats

Answer(s): B,C,D

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QUESTION: 84

EF has been offering its customers a 60 day credit period, but now wants to improve its cash flow. EF is proposing to offer a 2% discount for payment in 15 days.
Assume a 365 day year and an invoice value of $100.
Which of the following is the effective annual interest rate EF will incur for this action?

35.4%
17.8%
13.1%
63.4%

Answer(s): B

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Free F1 Financial Reporting Exam Braindumps (page: 21)

QUESTION: 81

QUESTION: 82

Explanation:

QUESTION: 83

QUESTION: 84