Cima E1 Exam Question No 13

Question No 13:

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(i) capital withdrawn from the business;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