FA & VAT

This type of fixed asset is not subject to depreciation

• buildings

• office equipment

• vehicle

• land

How long are fixed assets typically expected to remain in service?

• Less than one year

• A few months

• Several years

• One accounting period

If our input VAT < output VAT, we will result with

• VAT payable

• VAT receivable

• VAT balance

• VAT deficit

Which of the following is NOT a purpose of the fixed assets?

• Production of goods

• Generating immediate cash

• Providing service to customers

• Supporting company operations

According to the NIF C-6, there are ___ types of fixed assets

• 3

• 5

• 4

• 6

Which is a primary characteristic of the fixed assets?

• They are intended for immediate sale

• They have a definite size and shape

• They are short-term investments

• They depreciate instantly

What is the primary purpose of the fixed assets according to NIF C-6?

• To generate quick profits

• To be sold to customers

• To serve as temporary inventory

• Used in day-to-day business operations

VAT is classified as:

• direct tax

• indirect tax

• profit tax

• production tax

One of the following is not part of the acquisition cost of a building:

• advertising expense

• commissions

• legal fees

• permissions

Which of the following can be considered a land improvement?

• fencing

• outdoor lighting

• parking lot

• trailer parked within the land