ECONOMICS

Previous
Next

COST ACCOUNTING

TRANSFER PRICING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
PT ABC is an Indonesian company that is part of the ABC Ltd business group, which conducts affiliated transactions with the financial year starting from January 1 to December 31. From PT ABC’s financial reports, it is known that in the 2016 tax year, PT ABC’s gross turnover was 75 billion rupiah. In the 2017 fiscal year, are taxpayers required to organize and keep Transfer Pricing Documents?
A
Yes, Taxpayers are required to organize and keep Transfer Pricing Documents
B
No, Taxpayers are not required to organize and keep Transfer Pricing Documents
Explanation: 

Detailed explanation-1: -Working capital – the cash available to a business for day-to-day expenses.

Detailed explanation-2: -Consolidated financial statements refer to the financial statements which lead to the subsidiaries of the holding company its summative accounting figure.

Detailed explanation-3: -The income statement presents revenue, expenses, and net income. The components of the income statement include: revenue; cost of sales; sales, general, and administrative expenses; other operating expenses; non-operating income and expenses; gains and losses; non-recurring items; net income; and EPS.

Detailed explanation-4: -Accounts receivable is an example of permanent accounts. Other examples of permanent accounts are-asset, liability, equity, accounts payable, inventory, and investments.

There is 1 question to complete.
Previous
Next