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1: Depreciation is not an allowable expense because

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/generally-disallowable-expenses/

2: Which of the following statement best describes the term balancing charge?

Correct! Wrong!

Ref: Second Schedule, income tax act CAP 470

3: Which of the following facts is not true about diminution in value?

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/specifically-allowable-expenses/

4: Which among the following is NOT a disallowable expense for any business

Correct! Wrong!

5: A reduction in specific provision for doubtful debts is

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/specifically-allowable-expenses/

6: Recovery of a non-trade bad debt is a

Correct! Wrong!

7: A trader lost inventory which was uninsured. The right tax treatment is to

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/generally-allowable-expenses/

8: Core communications is running an advert on a billboard leased from Magnetic outdoor. They are allowed to

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/generally-allowable-expenses/

9: Incomes received by churches is exempted from tax because

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/taxation-of-not-for-profit-organizations/

10: Dividends paid to shareholders are not allowable deductions because

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/generally-disallowable-expenses/

11: Which of the following is not true about taxation of SACCOs

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/saccos/

12: Kiprotich a high school teacher and a farmer was paid Sh 720,000 by the employer and made a loss of Sh 200,000 for the year of income 2021.His taxable income for the year shall be

Correct! Wrong!

Ref: Income tax act CAP 470 sec 15(7) e

13: Royce Company Ltd which is a resident of Kenya reported income in 2021 was as follows: Business income Sh.5, 000,000, Commercial Rental income Sh.3, 000,000 and Farming loss Sh.2 000,000. The taxable income for the year shall be

Correct! Wrong!

Ref: Income tax act CAP 470 sec 15(7) e

14: What is the maximum period allowed to for a taxpayer to recover losses against profits made in subsequent years?

Correct! Wrong!

Refer to Section 15(4)

15: The following entities enjoy preferential corporation tax rates except

Correct! Wrong!

Ref Income tax act CAP 470 Sec Third Schedule

16: An international conglomerate intents to invest in Bungoma county Sh.300 Million on factory building and machinery. Capital allowance on these assets shall be granted at

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/capital-allowances-rates-2021/

17: n the second and subsequent years of assets use, capital allowances are generally claimed on

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/capital-allowances-rates-2021/

18: A director’s car is acquired at Sh. 4,000,000. Its qualifying cost for purposes capital allowances shall be

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/capital-allowances-rates-2021/

19: Deduction of interest expense in companies is limited to

Correct! Wrong!

Ref: Finance act 2021

20: The special tax treatment enjoyed by Primary cooperative societies is

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/Glossary/primary-cooperative-societies/