Aco Ltd Mined Diamonds at a Cost of FC 1,000,000

question 33

Multiple Choice

Aco Ltd mined diamonds at a cost of FC 1,000,000 and sold them to Beako for FC 2,500,000.Beako distributed the diamonds to its customers and received FC 4,000,000.If the national VAT is 20%, how much tax did Beako pay?

• A)FC 200,000
• B)FC 500,000
• C)FC 300,000
• D)FC 800,000

Understand the use of SOAP charting for organizing patient information.

Understand the accounting treatment of asset exchange transactions and the calculation of gain or loss.

Explain the treatment of extraordinary repairs in accounting and its impact on depreciation.

Grasp the criteria for capitalizing expenditures and distinguishing between capital and revenue expenditures.

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Definitions:

Financial Slack

The availability of excess funds or resources in a company that allows for flexibility in operations, strategic investments, or weathering financial uncertainties without immediate financial stress.

Keynes

Refers to John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and economic policies of governments.

Transactions Reasons

The underlying motives or justifications for conducting financial transactions or business operations.

Opportunity Costs

The price paid for not selecting the immediate alternative choice during decision-making.