Quiz - Midterm Examinations

5/15/2020 Quiz: Midterm Examinations
Midterm Examinations
Started: May 14 at 8:48pm
Quiz Instructions
Question 1 1 pts
The process by which the sovereign raises income to defray the expenses of the
government is called
a. Subsidy
b. Tariff
c. Taxation
d. Tribute
Question 2 1 pts
The law which amended 69 sections of NIRC, created 8 new sections and repealed 3
sections of the tax code that was signed by President Rodrigo Duterte last December
19, 2017.
a. R.A 10963- Tax Reform for Acceleration and Incorporation
b. RA 8424 -National Internal Revenue Code
c. R.A 10969-Tax Reform for Aggressive and Incorporation
d. R.A 10963- Tax Reform for Acceleration and Inclusion
Question 3 1 pts
https://feu.instructure.com/courses/44738/quizzes/135379/take 1/25
Which agency was required under TRAIN LAW to submit to the Bureau a tax
incentive report, which shall include information on the income tax, value added-tax
and other incentives availed of by cooperatives registered and enjoying incentives
under Republic Act No. 6938.
a) Cooperative Development Agency
b) Cooperative Development Authority
c) Bureau of Soil
d) Bureau of Incentives
Question 4 1 pts
The power to interpret the provision of the Tax Code and other tax laws shall be
under the exclusive and original jurisdiction of the Commissioner of Internal Revenue
subject to review by:
a) Secretary of Finance
b) Court of Tax Appeals
c) Court of Appeals
d) Municipal Court
Question 5 1 pts
Which theory in taxation states that without taxes, a government would be paralyzed
for lack of power to activate and operate it, resulting in its destruction?
a. Power to destroy theory
b. Lifeblood theory
c. Sumptuary theory
d. Symbiotic doctrine
Question 6 1 pts
Impact of taxation means
a. Shifting of tax
b. Refunds of tax
c. Payment of tax
d. Imposition of tax
Question 7 1 pts
The actual effort exerted by the government to effect the exaction of what is due from
the taxpayer is known as
a. Assessment
b. Levy
c. Payment
d. Collection
Question 8 1 pts
The least source of tax laws:
a. Statutes
b. Presidential Decrees
c. Revenue Regulation
d. Facebook Post
Question 9 1 pts
In every case of doubt, tax statutes are construed
a. Strictly against the government and the taxpayer
b. Liberally in favor of the government and the taxpayer
c. Strictly against the government and liberally in favor of the taxpayer
d. Liberally in favor of the government and strictly against the taxpayer
Question 10 1 pts
In every case of doubt, tax exemptions are construed
a. Strictly against the government and the taxpayer
b. Liberally in favor of the government and the taxpayer
c. Strictly against the government and liberally in favor of the taxpayer
d. Liberally in favor of the government and strictly against the taxpayer
Question 11 1 pts
The Sources of revenue should be sufficient to meet the demands of public

expenditures. This refers to:
a. Equality or theoretical justice
b. Fiscal Adequacy
c. Administrative Feasibility
d. Rule of Apportionment
Question 12 1 pts
The tax should be imposed proportionate to the taxpayer ability to pay
b. Fiscal Adequacy
Question 13 1 pts
The tax law must be capable of convenient, just and effective administration
b. Fiscal Adequacy
Question 14 1 pts
The process of examining, going over, or scrutinizing the books and records of the
taxpayer to ascertain the correctness of the tax declared and paid by the taxpayer.
a. Preliminary assessment notice
b. Letter of authority
c. Tax assessment
d. Tax audit
Question 15 1 pts
It is the official action of an officer authorized by law in ascertaining the amount of tax
due under the law from the taxpayer
a) Preliminary assessment notice
b) Letter of authority
c) Tax assessment
d) Tax audit
Question 16 1 pts
It is an official document that empowers a Revenue Officer to examine and scrutinize

a taxpayer’s books of accounts and other accounting records in order to determine
the taxpayer’s correct internal revenue tax liabilities.
a) Preliminary assessment notice
b) Letter of authority
c) Tax assessment
d) Tax audit
Question 17 1 pts
Income tax return for 2011 was filed April 2, 2012
Tax shown on the return was P6,000 which was paid upon filling.
Tax upon audit was P10,0000.
Assessment for Deficiency: April 12, 2014
Last day to send notice of assessment is:
a. April 2, 2015
b. April 15,2015
c. April 15, 2014
d. April 12, 2017
Question 18 1 pts
If no assessment was made, the last day for the government to collect by judicial
proceedings is
a. April 2, 2015
b. April 15,2015
c. April 15, 2014
d. April 12, 2017
Question 19 1 pts
If assessment or judicial action was made on April 20, 2015, the defense of the
taxpayer is:
a. He had paid the tax on time
b. He had paid the correct amount of tax
c. The right of the government to collect had already prescribe
d. There was no cause of action from the very beginning
Question 20 1 pts
Manny, a Filipino businessman, went on a business trip abroad and stayed there
most of the time during the year.
a. Resident citizen
b. Non-resident citizen
c. Resident alien
d. Boxer
Question 21 1 pts
Interest Income from peso bank deposit, BDO, Makati
a. Final withholding Tax- 10%
b. Basic income tax- graduated rates
c. Final withholding tax-20%
d. Exempt
Question 22 1 pts
Compensation Income, Minimum Wage Earner-Philippines
d. Exempt
Question 23 1 pts
Business Income, Domestic Corp, Net taxable income is P249,999.00
c. Basic income tax-30%
d. Exempt
Question 24 1 pts
Gain from sale of Mitsubishi Lancer 2010 Model
d. Exempt
Question 25 1 pts
Gain on Sale of Principal Residence compliant in the regulation
d. Exempt
Question 26 1 pts
Gain on Sale of Real properties classified as capital assets located in the Philippines
a. Capital Gains Tax- 6%
d. Exempt
Question 27 1 pts
Gain on Sale of Real properties used in business
a. Creditable withholding tax 6% before Basic income tax- graduated rates
b. Basic Income tax-graduated rates
c. Capital Gains Tax- 6%
d. Final withholding tax-20%
Question 28 1 pts
Avery is a resident citizen, earning purely compensation income as follows for 2018
taxable year:
Earning purely compensation income P250,000
a. Exempt
b. P130,000
c. P60,000
d. P2,000
Question 29 1 pts
Earning purely compensation income P2,800,000
a. Exempt
b. P746,000
c. P130,000
d. P666,000
Question 30 1 pts
Earning purely compensation income P8,000,000
a. Exempt
b. P 746,000
c. P2,410,000
d. P1,846,000
Question 31 1 pts
Juan is a resident citizen, earning purely business income for 2019 taxable year:
Gross Sales P3,200,000
Cost of Sales P1,600,000
Operating Expense P 600,000
Creditable Withholding Tax P60,000
Assuming Juan use, Graduated Rates, Itemized deduction, The Income Tax due for
2019
a. P80,000
b. P178,000
c. P190,000
d. P466,000
Question 32 1 pts
Assuming Juan use, Graduated Rates, Itemized deduction, The Income Tax Payable
for 2019
a. P466,000
b. P190,000
c. P130,000
d. P406,000
Question 33 1 pts
Assuming Juan use, Graduated Rates, OSD, The Income Tax due for 2019
a) P80,000
b) P178,000
c) P190,000
d) P466,000
Question 34 1 pts
Assuming Juan use, Graduated Rates, OSD, The Income Tax Payable for 2019
a. P118,000
b. P190,000
c. P130,000
d. P406,000
Question 35 1 pts
Juan is a resident citizen, earning purely business income for 2019 taxable year:
Gross Sales P2,900,000
Cost of Sales P1,400,000
Operating Expense P 500,000
Creditable Withholding Tax P 45,000
Assuming Juan use, Graduated Rates, Itemized deduction, The Income Tax due for
2019
a) P178,000
b) P412,000
c) P190,000
d) P175,000
Question 36 1 pts
Assuming Juan use, Graduated Rates, Itemized deduction, The Income Tax Payable
for 2019
a) P133,000
b) P190,000
c) P145,000
d) P95,000
Question 37 1 pts
Assuming Juan use, Graduated Rates, OSD, The Income Tax due for 2019
a. P232,000
b. P412,000
c. P190,000
d. P406,000
Question 38 1 pts
Assuming Juan use, Graduated Rates, OSD, The Income Tax Payable for 2019
a) P367,000
b) P145,000
c) P187,000
d) P95,000
Question 39 1 pts
Assuming Juan use, Final 8% Flat Rate, The Income Tax due for 2019
a. P232,000
b. P212,000
c. P190,000
d. P175,000
Question 40 1 pts
Assuming Juan use, Final 8% Flat Rate, The Income Tax Payable for 2019
a. P187,000
b. P167,000
c. P145,000
d. P95,000
Question 41 1 pts
A practicing professional, single, with his parents living and dependent upon him,
revealed the following data for 2018 taxable year:
Income From
Philippines Abroad
Income from employment

180,000 260,000
Business Income
850,000 980,000
Deductible business Expenses

610,000 750,000
Interest income on personal loans

8,000 3,000
Interest income on bank deposits

10,800 4,200
Interest income on money market placements

7,500 1,600
Interest income from Depository bank under FCDS

10,000
Dividend income from domestic Corp.

5,700 0
Dividend income from foreign Corp.

6,600 2,000
Royalty income
90,000 50,000
Winnings/prize from lotteries, raffle draws

45,000 16,900
Prizes from singing contest

5,600 0
Lotto Winnings
150,000 50,000
Royalty Income from sale of books

66,000 0
Additional Data
In February, The taxpayer bought a lot deemed as capital asset, The acquisition
cost was P840,000. He later sold the lot in December for P1,080,000.
In September, the taxpayer sold his 560 shares of stock of Ayala Investment
Corporation held by him as Capital Asset, thru a local stock exchange. The cost
was P36,900 whereas the sales price was P154,000
In October, the taxpayer sold for P1,020,000 his house and lot located in Makati,
held as capital Asset (not his principal residence). The Fair market value on the
date of sale was P950,000 and the acquisition cost was P475,000
Determine the Following assuming the taxpayer is a resident citizen
Taxable net income subject to Graduated Rates
a. 1,066,100
b. 1,076,100
c. 1,037,900
d. 1,057,900
Question 42 1 pts
Income Tax Payable
a) P212,830
b) P207,370
c) P218,830
d) P197,370
Question 43 1 pts
Final Tax on Passive Income
a. 69,330
b. 67,830
c. 68,030
d. 60,660
Question 44 1 pts
Capital Gains Tax
a. 126,000
b. 120,600
c. 121,800
d. 126,600
Question 45 1 pts
Determine the Following assuming the taxpayer is a non-resident citizen
a) 438,400
b) 440,200
c) 436,400
d) 438,200
Question 46 1 pts
Income Tax Payable
a) 39,600
b) 40,050
c) 39,100
d) 39,550
Question 47 1 pts
a) 69,330
b) 67,830
c) 68,030
d) 60,660
Question 48 1 pts
Capital Gains Tax
a) 126,000
b) 120,600
c) 121,800
d) 126,600
Question 49 1 pts
Determine the Following assuming the taxpayer is a non-resident Alien-Engage in

Trade or Business
a) 438,400
b. 440,200
c) 436,400
d) 438,200
Question 50 1 pts
Income Tax Payable
a) 39,600
b) 40,050
c) 39,100
d) 39,550
Question 51 1 pts
a) 38,400
b) 38,600
c) 37,830
d) 39,900
Question 52 1 pts
Capital Gains Tax
a) 126,000
b) 120,600
c) 121,800
d) 126,600
Question 53 1 pts
A data regarding a sale are as follows:
Selling Price P6,500,000
Fair Market Value P800,000
Zonal value P6,000,000
Expenses on the sales P275,000
Assumed that a resident citizen taxpayer sold a vacant lot (Held as Inventory) in the
Philippines. Compute the Capital Gains Tax
a. P373,500
b. P390,000
c. P360,000
d. P0
Question 54 1 pts
Assumed that a resident citizen taxpayer sold its house and lot in the Philippines.
Compute the Capital Gains Tax
a. P373,500
b. P390,000
c. P360,000
d. P0
Question 55 1 pts
Assumed that a non-resident citizen taxpayer sold a house and lot in the Philippines.
a. P373,500
b. P390,000
c. P360,000
d. P0
Question 56 1 pts
Assumed that citizen taxpayer sold a house and lot used in business the Philippines.
a. P373,500
b. P390,000
c. P360,000
d. P0
Question 57 1 pts
Assumed that citizen taxpayer sold his principal residence in the Philippines to buy a
new car. Compute the Capital Gains Tax
a. P373,500
b. P390,000
c. P360,000
d. P0
Question 58 1 pts
Assumed that citizen taxpayer sold his car in the Philippines to buy a principal
residence. Compute the Capital Gains Tax
a. P373,500
b. P390,000
c. P360,000
d. P0
Question 59 1 pts
Assumed that a non-resident citizen taxpayer sold a house and lot in the Philippines
for P5,800,000 instead of P6,500,000. Compute the Capital Gains Tax
a. P348,000
b. P390,000
c. P360,000
d. P0
Question 60 1 pts
Assumed that a non-resident citizen taxpayer sold a house and lot in the Philippines
however, its fair market value is P5,800,000 instead of P800,000. Compute the
Capital Gains Tax
a. P348,000
b. P390,000
c. P360,000
d. P0
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5/15/2020 Quiz: Midterm Examinations

a. R.A 10963- Tax Reform for Acceleration and Incorporation

b. RA 8424 -National Internal Revenue Code

c. R.A 10969-Tax Reform for Aggressive and Incorporation

d. R.A 10963- Tax Reform for Acceleration and Inclusion

a) Cooperative Development Agency

b) Cooperative Development Authority

b) Court of Tax Appeals

a. Power to destroy theory

Impact of taxation means

The least source of tax laws:

In every case of doubt, tax statutes are construed

a. Strictly against the government and the taxpayer

b. Liberally in favor of the government and the taxpayer

c. Strictly against the government and liberally in favor of the taxpayer

d. Liberally in favor of the government and strictly against the taxpayer

In every case of doubt, tax exemptions are construed

a. Strictly against the government and the taxpayer

b. Liberally in favor of the government and the taxpayer

c. Strictly against the government and liberally in favor of the taxpayer

d. Liberally in favor of the government and strictly against the taxpayer

The Sources of revenue should be sufficient to meet the demands of public

a. Equality or theoretical justice

The tax should be imposed proportionate to the taxpayer ability to pay

a. Equality or theoretical justice

a. Equality or theoretical justice

a. Preliminary assessment notice

a) Preliminary assessment notice

It is an official document that empowers a Revenue Officer to examine and scrutinize

a) Preliminary assessment notice

Income tax return for 2011 was filed April 2, 2012

Tax upon audit was P10,0000.

Assessment for Deficiency: April 12, 2014

Last day to send notice of assessment is:

c. April 15, 2014

d. April 12, 2017

c. April 15, 2014

d. April 12, 2017

a. He had paid the tax on time

b. He had paid the correct amount of tax

c. The right of the government to collect had already prescribe

d. There was no cause of action from the very beginning

Interest Income from peso bank deposit, BDO, Makati

a. Final withholding Tax- 10%

b. Basic income tax- graduated rates

c. Final withholding tax-20%

Compensation Income, Minimum Wage Earner-Philippines

a. Final withholding Tax- 10%

b. Basic income tax- graduated rates

c. Final withholding tax-20%

Business Income, Domestic Corp, Net taxable income is P249,999.00

a. Final withholding Tax- 30%

b. Basic income tax- graduated rates

c. Basic income tax-30%

Gain from sale of Mitsubishi Lancer 2010 Model

a. Final withholding Tax- 10%

b. Basic income tax- graduated rates

c. Final withholding tax-20%

Gain on Sale of Principal Residence compliant in the regulation