Question

In relation to the source of income which of the following statements is least correct?

Select one:

1. The source of business profits will be the place where the trader undertakes their trading activities.

2. The source of pension income will be the location of the fund that is paying the pension.

3. The source of interest income will generally be where the loan contract is entered into.

4. The source of salary and wage income will be the place where the contract of employment is entered into.

5. The source of dividend income will be the location of the fund out of which the dividend is paid.

Which of the following statements is least correct?

Select one:

1. An accrual basis of accounting would be appropriate for a solicitor with one part-time secretary.

2. A cash basis of accounting for tax would be appropriate for a person earning salary and wage income.

3. An accrual basis of accounting would be appropriate for a person operating a grocery store.

4. A cash basis of accounting would not be appropriate for a person operating a grocery store.

5. A cash basis of accounting would be appropriate for an accountant working on their own.

Answer 1

In relation to the source of income which of the following statements is least correct?
Select one:
1. The source of business profits will be the place where the trader undertakes their trading activities.
2. The source of pension income will be the location of the fund that is paying the pension.
3. The source of interest income will generally be where the loan contract is entered into.
4. The source of salary and wage income will be the place where the contract of employment is entered into.
5. The source of dividend income will be the location of the fund out of which the dividend is paid.	Dividend income typically comes from mutual fund schemes and equity shares
Which of the following statements is least correct?
Select one:
1. An accrual basis of accounting would be appropriate for a solicitor with one part-time secretary.	The cash method would be more appopriate to record income when you actually receive payment from customers and have the cash in hand and actually paying for expenses.
2. A cash basis of accounting for tax would be appropriate for a person earning salary and wage income.
3. An accrual basis of accounting would be appropriate for a person operating a grocery store.
4. A cash basis of accounting would not be appropriate for a person operating a grocery store.
5. A cash basis of accounting would be appropriate for an accountant working on their own.