Cima E1 Exam Question No 10

Question No 10:

Rollover relief allows?

A.Deferral of the payment of corporate income tax on gains arising from the disposal of
a business asset
B. Stock values to be rolled over; replacing cost of purchases with current values
C. Trading losses to be carried forward or rolled over to future periods
D. Capital losses to be carried forward or rolled over to future periods

Answer: A

Cima E1 Exam Question No 9

Question No 9:

The following is a list of payments which an organisation may incur during a year:
(i) capital withdrawn from the business;
(ii) interest paid;
(iii) legal expenses;
(iv) payments for domestic expenses of the directors;
(v) advertising.
Which two of the above items of expenditure will normally be disallowed for corporate
income tax purposes?

A. (i) and (iii)

B. (i) and (iv)

C. (ii) and (iv) 

D. (iii) and (v)

Answer: B

Cima E1 Exam Question No 8

Question No 8:

Accounting depreciation is replaced by tax depreciation?

A. To reduce the amount of depreciation allowed for tax
B. To increase the amount of depreciation allowed for tax
C. To ensure that standard rates of depreciation are used by all organisations for tax
purposes
D. So that the government can more easily manipulate the amount of tax organisations pay

Answer: C

Cima E1 Exam Question No 7

Question No 7:

A schedular system of corporate income tax means?

A. A method used to calculate the corporate income tax payable
B. A system that has a number of schedules which set out how different types of income
should be taxed
C. A system that has a number of schedules which set out when tax returns and tax
payments should be made
D. A system that has a number of schedules which set out the various tax rates

Answer: B

Cima E1 Exam Question No 6

Question No 6:

What are the Types of process technology?

- Computer-integrated manufacturing (CIM): CAD and CAM
- Flexible manufacturing systems (FMS)
- Computer numerical control (CNC): a computer converts the design produced by CAD into numbers, allowing the creation of almost any desired pattern or shape => reduced costs
- Automated guided vehicles (AGVs)
- Robots
- Decision-making systems: EIS (BI), MIS, TPS, DSS
- Expert systems
- Material requirement planning (MRP): computerised system for planning the requirements for raw materials, work-in-progress and finished goods