Question

Q1) For the current income tax year ending 30 June. Which of the following receipts does...

Q1) For the current income tax year ending 30 June.

Which of the following receipts does not constitute assessable income for Yang in the current income tax year? He started business in 2010.

Select one:

a. $5,000 of bank interest for 12 months on a term deposit. The interest was credited in the bank account on 1 July of the next income tax year.

b. $600 of wages the cheque was received on 29 June of current income tax year and banked on 1 July.

c. None of the options are correct.

d. $8,400 of advance fees paid by customers of Yang’s driving school business received in June of current income tax year. Yang does not provide refunds and treats these fees as a liability in his books.

e. $200 of dividends the cheque was received on 28 June of current income tax year and banked on 1 July.

Q2)

For the current income tax year ending 30 June.

Yen is a self employed lawyer. Which of the following is false:

Select one:

a. Customer would not pay a $1,000 debt, this may be deductible ITAA 1997 s 25-35.

b. She seeks to election onto the local council and this costs $2,000 in dinners. provided to her neighbours. This is deductible ITAA 1997 s 25-60.  

c. Home phone for home office is partly deductible ITAA 1997 s 8-1(1)(b).  

d. Car expenses for business use are deductible ITAA 1997 Div 28.

Business   Accounting   
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Answer #1

Q1) The following will not be assessable in current income tax year as it is not "earned" in the current year and will only be a liability in the Financial Position Statement.

d) $8,400 of advance fees paid by customers of Yang’s driving school business received in June of current income tax year. Yang does not provide refunds and treats these fees as a liability in his books.

Q2) The following is FALSE

b) She seeks to election onto the local council and this costs $2,000 in dinners. provided to her neighbours. This is deductible ITAA 1997 s 25-60.

This is because ITAA 1997 s 25-60 allows deductions only towards expenses in contesting for below and not the local council:

(a) the Parliament of the Commonwealth; or

(b) the Parliament of a State; or

(c) the Legislative Assembly for the Australian Capital Territory; or

(d) the Legislative Assembly of the Northern Territory of Australia.

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