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Helping Hand Questions for F1

Page: 18 / 18
Question 72

Which of the following would NOT normally be subject to a withholding tax?

Options:

A.

Royalties paid

B.

Profit for the year

C.

Interest on fixed term loans

D.

Equity dividends paid

Question 73

A conservative policy for financing working capital is one where short-term finance is used to fund:

Options:

A.

All of the fluctuating current assets and part of the permanent current assets.

B.

Part of the fluctuating current assets, but no part of the permanent current assets.

C.

All of the fluctuating current assets, but no part of the permanent current assets.

D.

Part of the fluctuating current assets and part of the permanent current assets.

Question 74

Company RET's financing activities are exactly 35% of their operating activities expenses each month. Below is a list of Company RET's total expenses for this month:

Inventory supplies purchased: £145,000

Employee wages: £65,000

Purchase of a shop: £105,000

Dividend payments: ??

Cash repayments on loan: £61,000

What is company RET's total dividends payment for this month?

Options:

A.

£12,500

B.

£49,250

C.

£131,600

D.

£26,500

Page: 18 / 18
Exam Code: F1
Exam Name: Financial Reporting
Last Update: May 3, 2024
Questions: 248
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