The following statements are correct, except: a. The amount of percentage tax is based on the gross receipts. b. The amount of gross receipts is derived by deducting the cost of services rendered from the service revenue. c. Receivables, although treated as income under the accrual concept, do not form part of gross receipts. d.Percentage tax is generally imposed on services rendered.

Q: The following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

Q: An example of an expense classifi cation by function is: A . tax expense.

A: Expenses in the Income Statement are classified into two types: Expense by nature Expense by…

Q: 1. Indicate whether the following expenditures are trade or business deductions (T), production of…

A: AGI stands for Adjusted Gross Income. AGI is the difference between gross income & adjustments…

Q: 7. Schedular system of taxation means: all types of income are added together to arrive at gross…

A: Taxation refers to the tax rate which is imposed by the authorities of government on the income…

Q: resident of the Republic may pay tax

A: A resident of South Africa is liable to pay tax to SARS on his/her income across the world.

Q: Deductions from gross income are subtracted from gross income to derive taxable net income. TRUE OR…

A: Gross income is the aggregate total income that is received by a taxpayer that is not tax-exempt…

Q: a)  Explain the difference between: Capital expenditure and revenue expenditure, giving an example…

A: Capital Expenditure: It is a expenditure made by company to acquire or renovate a property, plant or…

Q: 2. Creditable deductible input tax includes the following, except, a. Presumptive, transitional, and…

A: Value-added tax [VAT] is a tax that is charged on each and every stage of the goods and services…

Q: How much is the total gross income? * How much is regular itemized deductions from gross income? *…

A: Net taxable income is the amount of money left over after all operational costs and itemized…

Q: s a general rule, revenue is normally recognized when it is: a) Realizable and earned b)…

A: Revenue is very important for the company and revenue may be received now or may be realized later…

Q: Elements of gross income

A: Option B is wrong because realized income is an element of gross income. Option C is wrong because…

Q: Which of the following is deductible from gross income? Loss from a business receivable from a…

A: Loss from a business receivable from a customer which is estimated to be doubtful of collection:…

Q: How would you differentiate items that are exempted from gross income and items deductible from…

A: Items exempted from gross income refers to income which need not be part of income while calculating…

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest…

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order…

Q: How do I calculate the amount of sales tax that is included in total receipts?

A: Sales tax = Actual sales * Tax rate

Q: Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset…

A: Explanation: Tax Base is defined as the amount that is attributed to an asset or liability for tax…

Q: Net income at the end of the year is P100,000. Partners, A, B, C and D, share profits and losses in…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: Interest revenue need not be added to the gross income to compute for the total income.

A: Gross income and net income are two concepts associated with the accounting that helps to identify…

Q: The term ‘Operating Profit’ means profit before _____ a. Interest b. Tax c. Interest and tax d.…

A: Formula: operating profit = Sales - Cost of goods sold - Operating expenses - Depreciation.

Q: Sales of goods are taxed based on?   A. Gross Selling price B. Gross Receipt C. Landed Cost D.…

A: Gross Selling price is the price which is normally charged from the customer is selling the goods.…

Q: How does accrued but uncollected revenue affect the bal-ance sheet?

A: Accrued revenue: It can be defined as the revenue that has already been earned by the business but…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: Which of the following is not a from AGI deduction? A. The exclusion of an item of gross income B.…

A: The qualified business income deduction is a deduction from taxable income, not adjusted gross…

Q: Some items are treated as a deduction for tax purposes when they are paid but are recognised as…

A: A temporary difference is caused by the requirements of accounting standards or framework and the…

Q: Which of the following is not reported in an income statement under IFRS? a.    Discontinued…

A: Definition: Income statement refers to the financial results of business for the period of time.