I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

 

1 

Which of the following statements about sales tax is correct? 

 

A 

Sales tax is a direct tax levied on sales of goods and services. 

 

B 

Sales tax is an indirect tax levied on the sales of goods and services. 

 

C 

Traders can always reclaim all sales tax paid on their inputs. 

 

D 

Sales tax is charged by all businesses on taxable supplies. 

2 

When sales tax is not recoverable on the cost of a motor vehicle, it should be treated in which of the 

following ways? 

 

A 

Deducted from the cost of the asset capitalised 

 

B 

Included in the cost of the asset capitalised 

 

C 

Deducted from output tax for the period 

 

D 

Written off to the statement of profit or loss as an expense