ABC has the following summary of transactions for the quarter ended 30 June 20X9 ABC is registered for sales tax at 20%.

At the beginning of the quarter ABC owed $2,300 to the local tax authority.
What is the balance owing to the local tax authority at 30 June 20X97 Give your answer to the nearest dollar.

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Refer to the Exhibit.

A business which is not VAT registered, purchased stationery items on credit costing £500 excluding VAT.
The rate of VAT on the goods was 17.5%.
What are the correct ledger entries?
The answer is:

• A.Option A
• B.Option B
• C.Option C
• D.Option D

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Which of the following would be a good method of segregating the duties of staff?

• A.Employing separate persons to maintain the sales and purchase ledgers
• B.Employing a separate person to maintain and reconcile control accounts
• C.Employing an experienced cashier to deal with all bank transactions
• D.Employing a wages specialist to calculate and deal with the payment of wages

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Principles based accounting uses a conceptual basis to provide guidelines for preparing financial statements.
Which ONE of the following is an example of this approach?

• A.Tax legislation
• B.Company law
• C.Stock exchange regulations
• D.The Framework

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IAS 2 Inventories does not permit the use of the last in. first out (LIFO) method of valuing inventory In a time of rising prices, which of the following is a reason for this?

• A.Closing inventory is understated.
• B.Gross profit is overstated
• C.Purchases are overstated
• D.Cost of sales are understated

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