CIMA Exam Practice

Which of the following factors would not normally be considered when choosing between different sources of investment: A - Risk B - Liquidity C - Currency D - Maturity - Answer- C - Currency Which of the following would not normally be used to deal with the credit risk associated with exporting: A - Documentary credits B - Forfaiting C - Bills of exchange D - Treasury bills - Answer- D - Treasury bills On 1 April 20X4, an entity placed $5 million on deposit at an interest rate of 6.25%. The deposit has a maturity date of 30 June 20X4 (91 days later). Calculate the amount of cash that the entity will receive on maturity of the deposit. for interest purposes.) (There are 360 days in a year) - Answer- 5,000,000 + 7,993 = 5,078,993 Complete the sentence below by placing one of the following options in the space. Competent jurisdiction is: A - The country whose tax laws apply to the entity B - The country the income arises in C - The country where the parent is incorporated - Answer- A - The competent jurisdiction is the country whose tax laws apply to the entity Complete the sentence below by placing one of the following options in the space. A taxable person is: A - the person or entity who is responsible for completing the tax return B - the person or entity who is accountable for the tax payment C - the person or entity who has direct contact with the tax authority - Answer- B - A taxable person is the person or entity who is accountable for the tax payment Which TWO of the following are methods used for double tax relief? A - Exemption relief B - Deduction relief C - Tax loss relief D - Withholding relief E - Un