Question No. 1

What does the deduction method of giving double taxation relief mean?

ATax relief is gained by adding the foreign tax from the foreign income so that the gross amount will be subject to tax in the country of residency.

BTax paid in one country may be allowed as a tax deduction another country. Relief is normally restricted to the lower of the foreign or country of residency tax.

CTax relief is gained by deducting the foreign tax from the foreign income so that only the 'net' amount will be subject to tax in the country of residency.

DTax paid in one country may be allowed as a tax credit in another country. Relief is normally restricted to the higher of the foreign or country of residency tax.

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Correct Answer: C

Question No. 2

Which THREE of the following statements are NOT true of the IFRS Foundation trustees?

AAre involved in the technical matters relating to accounting standards

BAre mainly from Europe and the USA

CReceive funding by donations from the general public

DResponsible for appointing members of the IA5B

EResponsible of appointing members of the IFRS interpretations committee

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Correct Answer: A, B, C

Question No. 3

When developing local Generally Accepted Accounting Principles (known as local GAAP) some countries start with International Financial Reporting Standards (IFRSs) which are then amended to reflect local needs and conditions.

This type of approach is classified as:

AAdoption of IFRSs as local GAAP.

BUsing IFRSs as a model for local GAAP.

CIFRSs having a persuasive influence in formulating local GAAP.

DIFRSs having little or no impact in formulating local GAAP.

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Correct Answer: B

Question No. 4

Mr K is being pressured by his manager to change figures in his report so that it will improve his manager's bonus.

His manager has promised Mr K a promotion if he agrees to do this.

What threats is Mr K facing?

AIntimidation and familiarity

BFamiliarity and self-interest

CSelf-review and advocacy

DIntimidation and self-interest

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Correct Answer: D

Question No. 5

Which of the following statements about trade payables management is false?

ATrade payables are an important source of finance.

BWhen goods are in short supply customers who pay immediately are likely to be given priority over customers who take credit.

CTrade payables should be paid as quickly as possible.

DGoods or services may be more costly if extended credit is required.

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Correct Answer: C

Free CIMA CIMAPRA19-F01-1 Exam Actual Questions

The questions for CIMAPRA19-F01-1 were last updated On Dec 16, 2024