Workforce Numerical Past Questions and Answers


Federal Inland Revenue Service (FIR) charges tax rate of 5% on the annual profit of all business in Nigeria. If you missed V.A.T for a year and you are caught you would pay a V.A.T of 7% for the missed year(s) and the present year.

Using the table below answer the questions that follow.


46)

The Annual Income and Experts increases by 10% and 5% respectively for 2 years. What is the V.A.T to be paid for 2014 (In Naira)?

Answer :A

Explanation:

Income increase by 10% in 2013 = 1.10 x 550,000 = 605,000
Income increase by 10% in 2014 = 1.10 x 605,000 = 665,500
Expense increase by 5% in 2013 = 1.05 x 50,000 = 52,500
Expense increase by 5% in 2014 = 1.05 x 50,000 = 55,125
Profit = Annual Income (2014) – Annual Expense (2014)
= 665,500 - 55,125
= 609,875
V.A.T in 2014 = 5% of 609,875
= 30,493.75
47)

Kings Computer mistakenly paid a V.A.T of N32,000 for 2012. How much does this value deviate from the accurate V.A.T amount to be paid?

Answer : C

Explanation:

Annual Profit = Annual Income – Annual Expense
= 500,000 – 45,000
= 455,000
V.A.T = 5% of 455,000
= 22,750
Deviation = 32,000 – 22,750
= 9,250(C)
48)

The Annual Expenses for Kings Computer reduced by 10% for the year 2013 but the income remained the same. How much V.A.T would King Computer pay 2013(in Naira)?

Answer : A

Explanation:

Annual Expense reduced by 10% = 0.90 x 45,000
= 40,500
Annual Profit = Annual Income – Annual Expense
= 500,000 – 40,500
= 459,500
V.A.T = 5% of 459,000
= 22,975 (A)
49)

Shakespeare e-centre avoided V.A.T for 2012 but was caught and penalized. How much V.A.T would she pay for 2013, If the Income and Expenses remained the same for both years (in Naira)?

Answer : E

Explanation:

Annual Profit = Annual Expense – Annual Income
= 780,000 – 70,000
= 710,000

Since V.A.T was avoided the V.A.T percentage = 7% of 710,000
= 49,000
For both year it will be = 49,700 + 49,700
= 99,400 (E)
50)

How much V.A.T must Wisdom Cyber Café pay to FIRS for the year 2012(In Naira)?

Answer : D

Explanation:

Annual Profit = Annual Income – Annual Expense
550,000 – 50,000 = 500,000

V.A.T on Annual Profit = 5% of 500,000 = 25,000

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