5. Chilli Pepper Ltd depreciate its machinery using 10 years useful life but the useful life for such asset for tax purposes is 15 years. Chilli Pepper Ltd purchased machinery on 1 July 2018 for $500,000. Which one of the following is correct? Assume a Tax rate of 30%. Select one: None of these Deductible temporary difference as at 30 June 2020 is $33,333 Taxable temporary difference as at 30 June 2020 is $43,333 Taxable temporary difference as at 30 June 2020 is $33,333 Taxable temporary difference as at 30 June 2020 is $16,667.

6.

Which of the following cash flows may be reported on a net basis by a financial institution?

i. Cash payments and receipts for the acceptance and repayment of deposits with a fixed maturity date.

ii. Cash receipts and payments for the acceptance and repayment of deposits with no fixed maturity date.

iii. The placement of deposits with and withdrawal of deposits from other financial institutions.

iv. Cash advances and loans made to customers and the repayment of those advances and loans.

Select one:

II, III and IV

None of these

I, II and IV

I, II and III.

I, III and IV

7.

Cummins Limited estimated the future cash outflows over the next three years relating to settlement of warranty obligations would be as follows:

1 year from now: $40 000

2 years from now: $76 000

3 years from now:$90 000

Cummins Limited calculates that the present value of the total expected future cash outflow, using a discount rate of 8%, is:

Select one:

$173 640

$176 602

$190 740

None of these

$206 000

8.

A company reported the following information for a financial year:

Profit from ordinary activities before income tax expense	140 000
Income tax expense	70 000
Depreciation expense	12 000
Issue of shares	160 000
Loan made to another company- long term	30 000
Increase in accounts receivable	4 000
Decrease in inventories	6 000
Cash received from long term loans receivable	18 000
Dividends paid	100 000

What is the net cash inflow (outflow) from financing activities?

Select one:

$(8 000) net cash outflow.

$60 000 net cash inflow

$52 000 net cash inflow.

$62 000 net cash inflow.

None of these

Clear my choice

9.

Fisherman Ltd revealed the following balances for the year ended 30 June 2019.

Account receivable balance was $243,000 before allowance for doubtful debts. During the year ended 30 June 2019, Fisherman Ltd has provided bad debts expenses of $30,000 and $7,000 bad debts have been written off. There was no opening allowance for doubtful debts balances.

Which one of the following is correct?

Select one:

Tax base of Account receivable is $266,000

Tax base of Account receivable is $220,000

Tax base of Account receivable is $243,000

None of these

Tax base of Account receivable is $213,000

Clear my choice

10.

A contract for the rendering of services is entered into on 1 May 2020. The services are delivered continuously over a 1-year period commencing on 15 May 2020. The buyer pays for all the services on 30 May 2020.

How should the revenue be recognised?

Select one:

Over the year commencing 30 May 2020 on a straight-line basis

30 May 2020

None of these

Over the year commencing 15 May 2020 on a straight-line basis

15 May 2020