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Chapter Review Questions For each of the following multiple choice questions, select the most correct answer. 1 Which of the following sources of income is
Chapter Review Questions For each of the following multiple choice questions, select the most correct answer. 1 Which of the following sources of income is generally assessed on a cash basis? (a) (b) (c) (d) (e) Business income derived by a trading enterprise. Net Capital Gains. Business income derived by a sole practitioner professional. Fees invoiced by a builder. None of the above. 2 Which of the following sources of income is generally assessed on an accrual basis? (a) Interest received in cash. (b) Interest credited by the bank. (c) Salary received from an employer. (d) Invoice issued to a business client. (e) None of the above. 3 Which of the following is not a consideration in determining when an outgoing is incurred? (a) There is a presently existing liability. (b) The taxpayer is definitively committed. (c) The taxpayer is a resident for tax purposes. (d) The outgoing is properly referable to the income year. (e) None of the above 4 Which of the following has the same accounting and taxation treatment? (a) Fees and penalties. (b) Annual leave provided. Doubtful debts. (c) (d) Depreciation. (e) None of the above. 5 An exception to the rule that prepayments must be apportioned over the eligible service period applies to: (a) Amounts over $1,000. (b) Payments of salary and wages. (c) Conference booking. (d) Equipment leases. (e) None of the above. Find the answers in th
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