AAT L4 Business & Personal Tax Practice Questions - AAT Level 4 Diploma In Professional Accounting (Q2022) - Business Tax (BNTA) & Personal Tax (PNTA) Exam

Access More Questions

A sole trader's profit and loss account shows a net profit of £80,000. This figure includes £4,000 of depreciation and £1,200 of client entertaining. When adjusting the accounting profit to the tax-adjusted trading profit, how should these two items be treated?

Add back both depreciation and client entertaining Deduct both depreciation and client entertaining Add back depreciation only; client entertaining is allowable Add back client entertaining only; depreciation is allowable

Correct Answer:

Add back both depreciation and client entertaining

Access more questions from this quiz

Continue to AAT L4 Business & Personal Tax Practice Questions - AAT Level 4 Diploma in Professional Accounting (Q2022) - Business Tax (BNTA) & Personal Tax (PNTA) Exam for more practice questions and the full quiz experience.

Access More Questions