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To promote domestic energy production, a state offers a $5,000 tax credit to residents who buy solar panels manufactured within that state. No credit is available for panels bought from out-of-state. Is this constitutional?
Even if the state is spending its own money (subsidy), it cannot use its taxing power to discriminate against interstate commerce. Subsidies are often allowed under the 'Market Participant' exception, but discriminatory tax credits are almost always struck down.
An item of capital expenditure was incorrectly treated as revenue expenditure. What is the effect on non-current assets and the loss for the year?
| Option | Non-current Assets | Loss for the Year |
|---|---|---|
| A | Overstated | Overstated |
| B | Overstated | Understated |
| C | Understated | Overstated |
| D | Understated | Understated |
Option C is correct.
- Asset not capitalised → Non-current assets understated.
- Full cost charged as expense → expenses increase → loss increases → Loss overstated.
Choose the sentence with the correct tense and sentence structure:
Option D correctly uses past continuous ('were playing') for an ongoing action interrupted by another past action ('started to rain' - simple past). The other options mix tenses incorrectly.
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