Answer to Question #62760 in Accounting for jenny

Question

1. The ATO has the power to make legally binding tax determinations. TRUE OR FALSE?

2. Part of the ATO’s mandate is to help people understand their rights and managing noncompliance with the law. TRUE OR FALSE?

3. Income is only assessable once it is physically received by the taxpayer. TRUE OR FALSE?

4. There are three methods of calculating income - Cash or receipts basis; Credit or statement basis; Accruals or earnings basis. TRUE OR FALSE?

5. Where a taxpayer becomes a resident for tax purposes during an income year, the Medicare Levy is charged only on taxable income derived while an Australian resident. TRUE OR FALSE?

6. Assessable income consists of ordinary income, special income and statutory income. TRUE OR FALSE?

Answer 1

1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
6. FALSE