This is a ZAI Quiz based on ACCA FTX – Foundations in Taxation with 10 multiple choice questions. Each question has four answer choices. The correct answers are provided at the end.
ZAI Quiz: ACCA FTX – Foundations in Taxation
1. Which of the following is a direct tax?
A) Value Added Tax (VAT)
B) Excise Duty
C) Corporation Tax
D) Customs Duty
2. What is the main purpose of taxation?
A) Reduce exports
B) Discourage savings
C) Raise government revenue
D) Increase inflation
3. In the UK, who is responsible for collecting and administering taxes?
A) HMRC
B) FCA
C) Companies House
D) Bank of England
4. Which one of these is a capital tax?
A) VAT
B) Income Tax
C) Capital Gains Tax
D) Corporation Tax
5. What does PAYE stand for?
A) Pay All Your Earnings
B) Paid As You Earn
C) Payment After Year-End
D) Pay As You Earn
6. Which of the following is NOT a taxable benefit for an employee?
A) Company car
B) Employer pension contribution
C) Private medical insurance
D) Living accommodation
7. What is the personal allowance for UK income tax for the majority of taxpayers (as of 2024/25)?
A) £10,000
B) £12,570
C) £14,000
D) £15,000
8. How often must VAT returns normally be submitted?
A) Monthly
B) Quarterly
C) Annually
D) Biannually
9. Which of the following is a characteristic of progressive taxation?
A) Same tax rate for all
B) Lower earners pay higher rates
C) Higher earners pay higher rates
D) Tax based on spending
10. A company makes a trading loss of £20,000. What can it usually do with that loss?
A) Ignore it
B) Carry it forward to offset against future profits
C) Pay tax on it
D) Use it to reduce VAT liabilities
Answers:
- C) Corporation Tax
- C) Raise government revenue
- A) HMRC
- C) Capital Gains Tax
- D) Pay As You Earn
- B) Employer pension contribution
- B) £12,570
- B) Quarterly
- C) Higher earners pay higher rates
- B) Carry it forward to offset against future profits
