Uuestions: What does LTD stand for and means?
1.2.
What do we mean by internal statements?
(2)
Why is it so important for a company to prepare financial statements?
(2)
Gross profit has improved by R50 000. Suggest TWO ways to improve it further in
2018
Calculate the Profit after tax for 2018 if the income tax is 28% of the net profit.
1.6.
1.7
SARS Income tax for 2017 was debited and for 2018 credited. Explain the difference
between the two
(4)
Why a company pays tax? Which GAAP principle supports this?
The Directors asks for your advice, they want to manipulate the income tax to be paid
to SARS by not subtracting prepaid expenses from operating expenses.
1.8.1 Would you agree with them? Motivate.
(3)
1.8.2 Which GAAP principle will be interfered with?
1.8.3 What could be the consequences to the company if SARS can find out that
they overstated figures?​