The document contains 35 multiple choice questions about taxation in the Philippines. It tests knowledge on topics like what types of compensation and benefits are subject to different taxes, what qualifies as de minimis benefits, exclusions from gross income, capital gains taxation, final tax schemes, and accounting methods for calculating income. There are also 4 short problems testing calculation of gross income under different accounting methods, taxation of various passive incomes, and computation of capital gains tax using different inventory methods.
The document contains 35 multiple choice questions about taxation in the Philippines. It tests knowledge on topics like what types of compensation and benefits are subject to different taxes, what qualifies as de minimis benefits, exclusions from gross income, capital gains taxation, final tax schemes, and accounting methods for calculating income. There are also 4 short problems testing calculation of gross income under different accounting methods, taxation of various passive incomes, and computation of capital gains tax using different inventory methods.
The document contains 35 multiple choice questions about taxation in the Philippines. It tests knowledge on topics like what types of compensation and benefits are subject to different taxes, what qualifies as de minimis benefits, exclusions from gross income, capital gains taxation, final tax schemes, and accounting methods for calculating income. There are also 4 short problems testing calculation of gross income under different accounting methods, taxation of various passive incomes, and computation of capital gains tax using different inventory methods.
The document contains 35 multiple choice questions about taxation in the Philippines. It tests knowledge on topics like what types of compensation and benefits are subject to different taxes, what qualifies as de minimis benefits, exclusions from gross income, capital gains taxation, final tax schemes, and accounting methods for calculating income. There are also 4 short problems testing calculation of gross income under different accounting methods, taxation of various passive incomes, and computation of capital gains tax using different inventory methods.
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Name:
1. Which is a correct statement?
a. The compensation income of managerial or supervisory employee is subject to fringe benefit tax b. The taxable fringe benefit of tank and file employee is subject to fringe benefit tax c. The taxable fringe benefit of managerial and supervisory employee is subject to regular income tax d. The compensation income of rank and file employee is subject to regular tax 2. Which is not a supplemental compensation income? a. 13th month pay b. Honoraria c. Allowances d. Bonuses 3. Fringe benefits includes a. Basic salaries b. Fees c. Retirement and separation pay d. De minimis benefits 4. De minimis benefits are generally a. Exempt from tax b. Fully taxable c. Taxable in excess of P30,000 d. Subject to fringe benefit tax 5. The term de minimis do not include a. Christmas bonus b. Christmas gift c. Rice subsidy d. Monetized unused vacation leave 6. All items of passive income earned abroad is subject to regular tax to a. Resident citizen only b. Domestic corporations only c. Resident citizens and domestic corporations d. All taxpayers 7. Which taxpayer is not subject to regular tax? a. Domestic corporation b. Resident corporation c. Non-resident foreign corporation d. Business partnership or joint venture 8. Which individual taxpayer is not subject to progressive tax? a. Non-resident aliens engaged in trade or business b. Resident citizens c. Resident aliens d. Special aliens 9. Individual taxpayer shall report their income on a. A fiscal year
b. A calendar year c. Either fiscal or calendar d. A crop year 10.Corporations are allowed to report their income on a. A fiscal year b. A calendar year c. Either fiscal or calendar year d. A crop year 11.Which is not an exclusion from gross income? a. SSS benefits b. Income from government and its political subdivisions c. Income from foreign governments d. Income from government owned and controlled corporations 12.Termination benefits are exempt from income tax provided that the reason for termination is a. Within the employers control b. Within the employees control c. Beyond the employers control d. Beyond the employees control 13.The assignment of an insurance policy at an amount in excess of premiums paid on the policy is subject to a. Income tax b. Donors tax c. Estate tax d. Any of these 14.A policy who outlived the policy and received cash surrender value in excess of premiums paid is exempt upon a. The entire amount received b. The excess of the amount received over the premiums paid c. The amount representing a return of premiums d. All of the above 15.Which is not an acceptable ground for exemption of termination pay? a. Mass employee lay-of b. Closure of employers business c. Grave misconduct and neglect of duty d. Retrenchment of employers business 16.The following may be relevant in the determination of taxable income A. Gross income subject to regular tax B. Gross income subject to final tax C. Deductions from gross income D. Personal exemptions 17.Which is not considered in the determination of corporate taxable income? a. A and B b. C and D c. B and D
d. D only
18.In the immediately preceding problem,
which is not considered in the determination of individual taxable income? a. A and D b. B and D c. B only d. D only 19.Which is a source of income subject to regular income tax? a. Employment b. Trade or business or exercise of a profession c. Casual sales transactions d. All of these 20.Which of the following corporate taxpayers is not subject to tax on taxable income? a. Domestic corporation b. Business partnership c. Resident foreign corporation d. Non-resident foreign corporation 21.Which interest income will not be included in the income tax return? a. Interest income from bank deposits b. Interest income from lending c. Interest income from notes d. Interest income from employees 22.Which of the following sales of domestic stocks is subject to capital gains tax? a. Sale of domestic stocks through PSE b. Sale of domestic stocks directly to buyer c. Issue of domestic stocks to subscribers d. Exchange of stocks for stocks in a corporate merger 23.The sale of listed shares will never be subjected to a. 6% capital gains tax b. of 1% percentage tax c. 5% - 10% capital gains tax d. Any of these 24.The sale of an office building will be subject to a. of 1% percentage tax b. 6% capital gains tax c. 5% - 10% capital gains tax d. Regular tax 25.The sale of which of the following may be exempted from the 6% capital gains tax? a. Developed residential properties for sale b. Principal residence c. Unused land to the government d. Residential lot
26.Which is a capital asset to a realty
developer? a. Domestic stocks b. Vacant lot held for future development c. Construction equipment d. Head office building of the developer 27.Which is covered by final tax? a. Interest income from foreign banks b. P10,000 taxable prizes from the Philippines c. Share in the net income of a joint venture d. Share in the net income of a general professional partnership 28.Which is not subject to 10% final tax? a. Royalties from literary works b. Dividends from a domestic corporation c. Share in the net income of a business partnership d. Royalties from a business trademark 29.Which is not subject to 20% final tax? a. Interest income from trust funds b. Royalties from musical compositions c. P11,000 prizes d. Winnings 30.Dividends declared by a resident foreign corporation is a. Exempt from any tax b. Subject to 10% final tax c. Subject to regular income tax d. Subject to 20% final tax 31.The exemption on final tax on interest from long-term deposit is not applicable to a. Corporations b. Citizens c. Residents d. All of these 32.Which is not an income tax scheme? a. Final income taxation b. Ordinary gains taxation c. Capital gains taxation d. Regular income taxation 33.Initial payment means a. Downpayment b. Installment payments, exclusive of downpayment, within the year the installment sale was made c. Total collections within one year from the date the installment sale was made d. Total collection within the year the installment sale was made 34.Which is not an item of passive income? a. Royalties b. Salary
c. Deposit interest income
d. Prizes 35.Which of the following accounting methods is most consistent with the lifeblood doctrine? a. Accrual method b. Cash basis c. Installment method d. Percentage payment method
SHORT PROBLEMS Write your final
answer on the space provided.
Transaction Purchase 40,000 Purchase 63,000 Sale 92,000
Quantity 20,000
Price
30,000 40,000
6. Assuming the FIFO method is used,
compute for the capital gains tax of ABC. 500 7. Assuming the moving average method is used, compute for the capital gains tax of ABC. 480
PROBLEM 1 Iligan, Inc. has the following receipts during 2014: From services billing clients Advances from clients Total cash collections
400,000 100,000 500,000
The P100,000 advances refer to services
which will be rendered next year. Total uncollected billing increased from P100,000 in in December 31, 2010 to P150,000 at December 31, 2014. 1. Compute for the gross income under cash basis. 500,000 2. Compute for the gross income under accrual basis. 550,000 PROBLEM 2 During 2014, the taxpayer received the following prizes and winnings: Passive Income Abroad Prizes 400,000 Winnings
PROBLEM 4 Mrs. Kapalong, resident citizen, has several interests in various businesses and partnerships. She earned the following income during the year: Dividends from domestic corp. 120,000 Dividends from resident foreign corp. 80,000 Share in the NI of a business part. 200,000 Share in the net income of GPP 100,000
Phil. 10,000 400,000
100,000
3. What is the reportable item of gross
income subject to regular tax if the taxpayer is a resident citizen? 510,000 4. What is the reportable item of gross income subject to regular tax if the taxpayer is a non-resident citizen? 10,000 5. What is the reportable item of gross income subject to regular tax if the taxpayer is a resident foreign corporation? 410,000 PROBLEM 3 ABC Company, a domestic corporation, has the following transactions on the sale of stocks of another domestic corporation:
8. How much is the gross income subject to
regular income tax? 180,000 9. How much is the final tax to be withheld? 32,000 10.How much is the gross income subject to final tax? 320,000
