Taxable Income Determination Quiz

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What can the Minister specify in a decision to adjust Taxable Income?

Only income that is already accounted for

Income specifically related to property transactions

Any income or expenditure not considered previously (correct)

Expenses that were not initially accounted for

For Taxable Persons preparing financial statements on an accrual basis, they may elect to consider gains and losses on a realization basis for assets and liabilities subject to which accounting standards?

All assets subject to fair value or impairment accounting standards (correct)

Assets with no fair value

Assets with unrealized gains only

Assets without impairment accounting

What is the definition of 'Assets held on capital account' according to the text?

Assets that are not subject to depreciation

Assets treated as property, plant and equipment (correct)

Assets eligible for depreciation only

Assets that are traded frequently

In what basis should Taxable Persons prepare financial statements to elect gains and losses realization?

Accrual basis Signup and view all the answers

What type of assets are excluded from being considered 'Assets held on capital account'?

Assets held on revenue account Signup and view all the answers

Which adjustments can the Minister specify for Taxable Income besides other adjustments?

Any adjustments as specified by the Minister Signup and view all the answers

What do liabilities held on capital account refer to?

Liabilities incurring non-deductible expenditure Signup and view all the answers

Which assets and liabilities are held on revenue account?

Assets and liabilities other than those on capital account Signup and view all the answers

What is included in an unrealized gain or loss?

Foreign exchange gain or loss only Signup and view all the answers

Under what circumstances can a Taxable Person change their accounting method?

By submitting a formal application to the Authority Signup and view all the answers

What can the Minister prescribe under the Decree-Law?

Circumstances for preparing financial statements using accrual basis Signup and view all the answers

In terms of defining Taxable Income, what adjustments can be made for specified items?

Adjustments for unrealized gains and losses Signup and view all the answers

What is the focus of thin capitalization norms?

Determining taxable income Signup and view all the answers

Which aspect is considered when applying thin capitalization norms?

Debt-to-equity ratio Signup and view all the answers

What is the purpose of relief for small businesses/start-ups in tax reporting?

Simplifying financial and tax reporting Signup and view all the answers

What distinguishes between capital and revenue items for tax purposes?

Unrealized gains/losses Signup and view all the answers

In thin capitalization norms, what does 'valid commercial reasons' refer to?

Purpose of the borrowing Signup and view all the answers

How do accounting profits differ from taxable income?

Timing of recognition of revenues and expenses Signup and view all the answers

Taxable Income Determination Quiz

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