Accounting Multiple Choice Question – 8 September 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

VAT paid by a taxable person on the purchase of goods and / or services, other than goods or services in respect of which VAT cannot be reclaimed, from another taxable person is known as . . .

Select ONE answer:

  1. output credits.
  2. input credits.
  3. irrecoverable VAT.
  4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Incorrect – There is no such thing as output credits – tax payable on supplies / sales is known as output tax.
  2. Correct
  3. Incorrect – Irrecoverable VAT is VAT paid which cannot be reclaimed. VAT paid by a taxable person on the purchase of goods and / or services, other than goods or services in respect of which VAT cannot be reclaimed, from another taxable person would be recoverable.
  4. Incorrect

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.