This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Transfer Pricing > Transfer Pricing – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Transfer Pricing Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of "FAR" company has the most profit? A) Toll Manufacturer. B) Contract Manufacturer. C) Licensed Manufacturer. D) Fully Pledge Manufacturer. Show Answer Correct Answer: D) Fully Pledge Manufacturer. 2. Efforts that can be done by taxpayers to prevent potential disputes in transfer pricing are: A) Create TP documentation. B) Using the latest database in determining comparators. C) Submit an application for an Advance Pricing Agreement. D) Use the services of a tax consultant. Show Answer Correct Answer: C) Submit an application for an Advance Pricing Agreement. 3. Comparable transactions entered into by affiliates with independent parties are A) External comparison candidate. B) Internal comparison candidate. C) Not a comparison candidate. D) All answers are wrong. Show Answer Correct Answer: B) Internal comparison candidate. 4. Guidance on performing FAR analysis in the OECD TP Guideline is available at A) Chapter 2. B) Chapter 1. C) Chapter 3. D) Chapter 5. Show Answer Correct Answer: B) Chapter 1. 5. Which is a special relationship? A) Shareholding. B) Close relationship. C) One degree blood relationship. D) Former relationship. Show Answer Correct Answer: C) One degree blood relationship. 6. Which statement is correct about a special relationship, except? A) Capital participation 10 %. B) There is no participation but management control. C) Family relationship. D) Lowest participation 25 %. Show Answer Correct Answer: A) Capital participation 10 %. 7. Following are the implications of special relations and transfer pricing, except A) Income reported is less than it should be. B) Expenses are reported appropriately. C) Cost Exceeded should be. D) Transactions are not reported at fair prices. Show Answer Correct Answer: B) Expenses are reported appropriately. 8. NPA Subsidy will claim by A) Branch which may turn into profit making after claim subsidy. B) All Branch. C) ARMP Branch. D) Specialised Branch. Show Answer Correct Answer: A) Branch which may turn into profit making after claim subsidy. 9. Which method is the weakest but easiest to do? A) CUP. B) Resale Price. C) Cost Plus. D) TNMM. Show Answer Correct Answer: D) TNMM. 10. Transfer Charge under FTP based on A) MCLR. B) LIBOR. C) Cost/Yield of fund of same maturity. D) Bank Rate. Show Answer Correct Answer: C) Cost/Yield of fund of same maturity. 11. What is the independence threshold used in Greece? A) 10%. B) 25%. C) 30%. D) 33%. Show Answer Correct Answer: D) 33%. 12. Subsidy for Branches on account of Bad Debts written Off (net of recoveries ) during the respective quarter for which subsidy is claim. A) 10%. B) 100%. C) 8%. D) 10.5%. Show Answer Correct Answer: B) 100%. 13. FTP Subsidy should be claim on ..... basis. A) Quaterly. B) Yearly. C) Monthly. D) Half Yearly. Show Answer Correct Answer: A) Quaterly. 14. The period of examination of the transfer pricing is A) 1 year. B) 2 years. C) 6 months. D) 9 months. Show Answer Correct Answer: B) 2 years. 15. PT Sansan has a total fixed cost of $ 150,000 and a variable cost of $ 9 per unit. If the selling price per unit is $ 12, what is the sales break-even in dollars? A) $ 200.000. B) $ 450.000. C) $ 480.000. D) $ 600.000. Show Answer Correct Answer: D) $ 600.000. 16. How soon after the end of the tax year should local files and master files be available? A) 3 Months. B) 4 Months. C) 5 Months. D) 6 months. Show Answer Correct Answer: B) 4 Months. 17. FTP entries will pass by A) Branch. B) BCC. C) Data warehouse. D) Data Centre. Show Answer Correct Answer: D) Data Centre. 18. FTP is based on A) Product of Deposit and Advance. B) Net of Deposit and Advance. C) Average of Deposit and Advance. D) All Right. Show Answer Correct Answer: A) Product of Deposit and Advance. 19. How many members of our team are under 30? A) 5. B) 7. C) 9. D) 11. Show Answer Correct Answer: B) 7. 20. Which cannot be classified as a special relationship due to control/mastery? A) Owner Common. B) Directors Equality. C) Management Equality. D) Regional Similarities. Show Answer Correct Answer: D) Regional Similarities. ← PreviousNext →Related QuizzesManagement Accounting QuizzesAccounting QuizzesTransfer Pricing Quiz 1Transfer Pricing Quiz 3Transfer Pricing Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books