Tax Reporting & Strategy

Which statement about TRS is incorrect?

• TRS services are similar to full-scope accounting & tax outsourcing

• TRS never provides tax advice (detailed research and analysis on specific tax issue)

• TRS does not audit financial statements. But we conduct tax reviews (review tax calculations prepared by the Clients and comment on the detected tax risks)

• MS Excel and digital skills are essential for working in the TRS team

What is the journal entry when the company rendered services to the client?

• Debit Cash, Credit Revenue

• Debit Accounts Receivable, Credit Revenue

• Debit Revenue, Credit Accounts Receivable

• Debit Revenue, Credit Cash

What is the journal entry when the company purchased inventory?

• Debit Inventory, Credit Cash

• Debit Inventory, Credit Accounts Payable

• Debit Cash, Credit Inventory

• Debit Accounts Payable, Credit Inventory

What are the journal entries when the company sold goods?

• Debit Accounts Receivable, Credit Sales Revenue; Debit Cost of Goods Sold, Credit Inventory

• Debit Sales Revenue, Credit Accounts Receivable; Debit Inventory, Credit Cost of Goods Sold

• Debit Cash, Credit Sales Revenue; Debit Inventory, Credit Cost of Goods Sold

• Debit Sales Revenue, Credit Cash; Debit Cost of Goods Sold, Credit Inventory

What is the journal entry when the company purchased a computer?

• Debit Office Supplies, Credit Cash

• Debit Cash, Credit Office Equipment

• Debit Fixed assets, Credit Cash

• Debit Office Equipment, Credit Accounts Payable

What is the journal entry when the company declared taxes?

• Debit Tax Expense, Credit Cash

• Debit Tax Expense, Credit Tax Payable

• Debit Tax Payable, Credit Tax Expense

• Debit Cash, Credit Tax Expense

Which expenses can be deducted for tax purposes?

• Expenses not connected with income-generating activities

• Expenses with incomplete primary documents package

• Expenses related to the prior period

• Services rendered by related parties

If a company buys fruits, can these expenses be deducted?

• No, fruits are never deductible

• Yes, if the company sells cakes with fruits

• Yes, if the fruits were purchased for employees

• Yes, if the fruits were purchased for the clients (new year gifts)

Which statement is correct:

• CIT deductions are based on e-invoice date, VAT offset is based on turnover date

• VAT offset should be based on e-invoice date, whereas CIT deduction should be in line with turnover date

• CIT deductions and VAT offset are based on the same date

• VAT offset is based on payment date, CIT deduction is based on invoice date

Which statement is correct:

• Transactions with non-residents are always subject to withholding tax and reverse charge VAT

• Withholding tax rate can be reduced under the Double Tax Treaty

• Withholding tax rate can be reduced if the tax residency certificate is in place

• Tax base for reverse charge VAT and withholding tax should be always equal