Friday Five – 6 September – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:13 am
Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday
What’s this all about?
It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.
These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.
- Who does the Consumer Credit Act 1974 affect?
- Almost everyone who provides any form of credit or advice on obtaining/repaying debt
- Building societies and banks only
- Loans secured on land and property authorised by Life Offices
- Estate agents and land surveyors
- Hydra’s year-end accounts contained the following informationGross Profit £15,625
Tax on ordinary activities £2,325
Preference dividends £800 (2,000 preference shares in issue)
Ordinary dividends £1,400 (3,000 ordinary shares in issue)
What is their earnings per share?
- Liz has been off work sick for 6 months and is being paid through her employer’s income protection (IP) policy. Which of the following statements concerning the tax treatment of the IP is correct?
- Liz will receive a gross amount of IP benefit from her employer as sick pay
- The premiums paid by the employer are not classed as an allowable expense
- The benefit is paid directly to the employer and treated as a trading receipt
- The premiums are treated as a benefit in kind for Liz
- Four friends are considering whether they would find cash flow modelling useful in helping them decide how much they should withdraw each year from their flexi-access drawdown fund. It is true to say that the ones who will benefit are: Tick all that apply.
- Ben, who wishes to withdraw enough each year to meet his needs while keeping the capital value of his drawdown fund intact to pass on to his children.
- Jeff, who wishes to withdraw enough each year to provide an income for life.
- Tristan, who does not mind what happens to his drawdown fund as he has plenty of non-pension investments he can call on.
- All of them.
- Craig is one of three partners in a partnership and has £80,000 in the capital account. On his death, this is treated as:
- An asset of the partnership
- An asset of his estate and repayable immediately
- An asset of his estate and the partnership equally
- An asset of the partnership up to the amount stated in the partnership agreement with the remainder being due to his estate
- A – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 1:2
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 1
Grab our taster mock exam paper for CII R03. Click here to download.
- AB – See R04 Study Text, Chp 8
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R05 Study Text, Chp 10.2
Grab our taster mock exam paper for CII R05. Click here to download.
How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?
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