5. A business-related transaction refers to regulatory requirements that a business entity must comply inorder to operate a legitimate business. It does not include the requirements which confer privilege to anindividual to perform a specific right or interest. Is the statement correct?

Business-related transactions shall appear in the Business or entity's Statement profit and loss a/c…

Answered: 5. A business-related transaction…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 1MCQ

See similar textbooks

Similar questions

46. The allocation of owner's private expenses to his/her business violates which of the following? A.O Accrual concept B.Matching concept C.Separate business entity concept D.Consistency concept
Who are covered by the anti-bribery provisions? Who are covered by the accounting provisions?
Which of the following does not constitute fair presentation and compliance with IFRS? A) an entity apply IFRS, with additional disclosure when necessary. B) an entity rectify inappropriate accounting policies by additional disclosures. C) an entity did not selectively apply standards it likes. D) an entity follows the recognition criteria for assets, liabilities and expenses set out in the conceptual framework.
In very few cases will a company fall under the purview of more than one set of regulations or taxing authorities influences. True or False
Who is an agent and what are the duties of an agent? How does the principle of vicarious liability affect the principal/agent relationship? What is the nature of the authority that can be granted to a duly appointed agent?
15. A fair presentation is achieved by compliance with applicable IFRSs. A fair presentation also requires an entity: (choose the incorrect statement) a. to provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact of transactions b. to select and apply accounting policies in accordance with IAS 8 c. to establish a system of internal control, the responsibility for which is the entity’s auditor. d. to present information, including accounting policies, in a manner that provides relevant, reliable, comparable, and understandable information.
One reason that an cntity is allowed to change its accounting policy is when It is required by an accounting standard. It is required by law. It is ordered by management. All of these would allow an entity to change an accounting policy.
1. Which statement is incorrect regarding materiality judgments? A. An entity is only required to apply recognition and measurement equirements in PFRSS when the effect of applying them material. B. An entity need not provide a disclosure specified by a PFRS if the information resulting from that disclosure is not material. C. Public availability of information relieves an entity of the obligation to provide material information in its financial statements. D. It is inappropriate for the entity to make, or leave uncorrected, immaterial departures from PFRSs to achieve a particular presentation of its financial position, financial performance or cash flows. 2. Which of the following is an appropriate aggregation? A. Cash and cash equivalents (Cash in bank and sinking fund) B. Trade and other receivables (Accounts receivable and investment in bonds) C. Trade and other payables (Accounts payable and accruals) D. Provisions (Income tax payable and warranty liability) 3. Which of the…
Explain what the separate entity assumption means whenit says a business is treated as separate from its owners foraccounting purposes
How should an accounting professional go about determining whether a proposed action is in the public interest?
In which of the following instances does Entity A have control over Entity B? A. Entity A and Entity B both have unilateral rights in directing the relevant activities of Entity B. Entity A’s rights are considered protective rights. B. Entity A’s right to direct Entity B’s relevant activities is exercisable only upon the occurrence of a contingency. C. Entity A has the right to direct the relevant activities of Entity B but only in accordance with the directives of Entity C. D. Entity A holds a 30-day forward contract to buy a majority of Entity B’s voting rights. The contract can be cancelled in a shareholders meeting. A Shareholders meeting will be held in 3 months’ time.
In accordance with IFRS 15, customer loyalty awards on the goods or services sold, the transaction price received or receivable by the entity must be allocated between the goods or services sold and the customer loyalty awards redeemable in the future partly as revenue and partly as a liability. must be recognized in full as a liability. must be recognized in full as revenue. must be recognized in full as an expense.

SEE MORE QUESTIONS

Recommended textbooks for you

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Contemporary Auditing

Accounting

ISBN:

9781337650380

Author:

KNAPP

Publisher:

Cengage

Auditing: A Risk Based-Approach (MindTap Course L…

Accounting

ISBN:

9781337619455

Author:

Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:

Cengage Learning

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Contemporary Auditing

Accounting

ISBN:

9781337650380

Author:

KNAPP

Publisher:

Cengage

Auditing: A Risk Based-Approach (MindTap Course L…

Accounting

ISBN:

9781337619455

Author:

Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:

Cengage Learning

Business/Professional Ethics Directors/Executives…

Accounting

ISBN:

9781337485913

Author:

BROOKS

Publisher:

Cengage

Business Its Legal Ethical & Global Environment

Accounting

ISBN:

9781305224414

Author:

JENNINGS

Publisher:

Cengage

SEE MORE TEXTBOOKS

5. A business-related transaction refers to regulatory requirements that a business entity must comply in order to operate a legitimate business. It does not include the requirements which confer privilege to an individual to perform a specific right or interest. Is the statement correct?