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Principles of Deduction

This document contains practice questions and exercises from Chapter 13 on principles of deduction. It includes true/false questions, multiple choice questions testing various tax theories and problems, and exercises calculating cost of goods sold, depreciation amounts, and classifying expenses as business or personal. The exercises are meant to help students apply and test their understanding of concepts from the chapter.

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Sher John Tomboc
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701 views7 pages

Principles of Deduction

This document contains practice questions and exercises from Chapter 13 on principles of deduction. It includes true/false questions, multiple choice questions testing various tax theories and problems, and exercises calculating cost of goods sold, depreciation amounts, and classifying expenses as business or personal. The exercises are meant to help students apply and test their understanding of concepts from the chapter.

Uploaded by

Sher John Tomboc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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RUTH B.

BARIA

BSBA- HRM 2

(2:05-3:35)((TF)

CHAPTER 13:PRINCIPLES OF DEDUCTION

Practice test

You have your book on the subject matter. Submit answers/solutions to


the questions, true or false, multiple choices and problem/exercises at the end
of the chapter.

Exercise Drill No. 1

Put a check ton the appropriate box corresponding to the item.

Business Expense Personal Expense

1. Medical expense of
the proprietor

(business owner)
2. Tuition fees of an
employee to
acquire expertise
for future use of

the business.

3. Transportation
expense from
office to client
establishments.

4. Cost of
entertaining family
members of the
proprietor.

5. Cost of
entertaining clients
receipted under
the name of the

taxpayer’s spouse.

6. Interest expense to
finance the
construction of the
office builing.

7. Loss on destruction
of taxpayer;s
residence.

8. Office Utilities
expense.

9. Repairs that
restore the value of
destroyed business
properties.

10. Tuition fee of the
taxpayer’s
dependents.

11. Salary of
household helps
and maids.

12. Salary of office
staff.

13. Vacation expense
of family members
of the proprietor.

14.Travel expense to
attend seminar.

15. Costs of renewal of
the taxpayer’s
professional

license.

Exercise Drill No. 2

2018 2019 2020


1. Land which
was sold on 200k
2020.
2. Equipment
with 4- year
estimated 25k 50k 50k
useful life.
3. Inventory
which was 200k
sold in 2019.
4. Salaries of
administrative
and sales 200k
personnel in
2019.
5. Rental of
facility for the 100k 100k
years 2018
and 2019.
Exercise Drill No. 3

Required:

Compute the cost of goods sold.

Answer: 1,960,000

Exercise Drill No. 4

Year Straight line Sum-of-the- 150% 200%


method years digit declining declining
balance balance
2015
2016
2017
2018
2019
2020
Exercise Drill No. 5 14.NDE
15.NDE
CE,DE,NDE
16.DE
1. NDE 17.CE
2. DE 18.CE
3. CE 19.CE
4. NDE 20.DE
5. CE 21.DE
6. NDE 22.DE
7. CE 23.NDE
8. NDE 24.NDE
9. DE 25.NDE
10.CE 26.NDE
11.NDE 27.DE
12.NDE 28.NDE
13.NDE 29.NDE
30.NDE
True or False 1 True or False 2
1. TRUE 1. False
2. False 2. True
3. False 3. True
4. True 4. False
5. False 5. True
6. True 6. False
7. True 7. True
8. False 8. False
9. False 9. False
10.True 10.False

Multiple Choice- Theory: Part1 19.B


20.D
1. C
21.D
2. A
22.C
3. A
23.C
4. A
24.D
5. C
25.C
6. A
7. B
8. B
9. B
10.C
11.D
12.D

13.B
14.D
15.B
16.D
17.A
18.A
Multiple Choice- Theory: Part 2

1. D 14.C
2. D 15.D
3. A 16.D
4. B 17.A
5. B 18.D
6. A 19.A
7. D 20.D
8. D 21.B
9. D 22.C
10.A 23.A
11.D 24.D
12.D 25.D
13.C

Multiple Choice-Problems: Part 1

1. A 9. C
2. A 10.A
3. A 11.C
4. C 12.D
5. B 13.A
6. C 14.B
7. B 15.D
8. B 16.A
Multiple Choice-Problems: Part 2

1. A
2. A
3. C
4. B
5. C
6. B
7. A
8. B
9. A
10.D
11.C
12.A
13.B
14.B
15.D

Multiple Choice-Problems: Part 3

1. B
2. D
3. D
4. D
5. A
6. D
7. C
8. B
9. C
10. B

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