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Created by JENRIQ: Question Text

These questions assess knowledge of deductions allowed under the Philippine Tax Code for arriving at taxable net income. They cover specific expenses, business expenses, interest expenses, net operating loss carryovers, losses, tax expenses, non-deductible interest, charitable donations, bad debt expenses, and requirements for deductible charitable contributions. The respondent is asked to identify the option that is not a requisite or allowance for each type of deduction.

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Florence Rose Arroyo Romano
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169 views6 pages

Created by JENRIQ: Question Text

These questions assess knowledge of deductions allowed under the Philippine Tax Code for arriving at taxable net income. They cover specific expenses, business expenses, interest expenses, net operating loss carryovers, losses, tax expenses, non-deductible interest, charitable donations, bad debt expenses, and requirements for deductible charitable contributions. The respondent is asked to identify the option that is not a requisite or allowance for each type of deduction.

Uploaded by

Florence Rose Arroyo Romano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Created by JENRIQ

Question 1
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These are the lists of specific expenses allowed by the Tax Code and tax regulations to be
deducted from gross taxable income to arrive at the taxable net income

Select one:
a. Special deduction
b. Special expenses
c. Itemized expenses
d. Optional standard deduction
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Question 2
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The following are business expenses, except:

Select one:
a. Personal exemptions
b. Salaries, wages and other forms of compensation
c. Representation, entertainment, amusement and recreation expenses that are directly
related to the development of the taxpayer's trade, business or profession
d. Grossed-up monetary value of fringe benefits granted by the employer to the employee
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Question 3
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The following are the requisites for the interest expense to be deductible, except:

Select one:
a. The interest must have been paid or accrued during the taxable year
b. The indebtedness must be that of the taxpayer.
c. There is indebtedness may be entered either verbally or in writing.
d. The indebtedness must be connected with the taxpayer's trade, business or profession.

Question 4
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The following taxpayers entitled to deduct Net Operating Loss Carry-Over (NOLCO), except:

Select one:
a. Domestic and resident foreign corporationscovered by the NCIT
b. Self-employed individual taxpayers
c. Individual taxpayers earning purely compensation income
d. Estates and trusts

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Losses are allowed as deductions from gross income if the following provisions are met,
except:

Select one:
a. The loss need not be reported to the BIR.
b. The loss must be that of a taxpayer and incurred in connection with trade, business or
profession
c. The loss must not be compensated by insurance or other forms of indemnity
d. The loss must be actually sustained in a closed and completed transaction
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The following are the requisites for the tax expense to be deductible, except:

Select one:
a. It must be directly imposed upon the taxpayer
b. It must be connected with the taxpayer's trade, business or profession
c. All taxes paid are generally deductible
d. It must be paid or incurred during the taxable year

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The following are non-deductible interest expense, except:

Select one:
a. Interest paid in advance by a taxpayer using cash basis method of accounting
b. Interest for tax delinquency
c. Interest on indebtedness that has been prescribed
d. Interest expense arising between related taxpayers

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Donations made to the following institutions are deductible in full, except:

Select one:
a. Donations for economic development shall be in accordance with the National Priority
Plan determined by the National Economic Development Authority (NEDA)
b. Government of the Philippines or to any of its agencies or political subdivisions, including
fully-owned government corporations exclusively to finance, to provide for or to be used in
undertaking priority activities in: education, health, youth and sports development, human
settlement, science and culture, economic development
c. Accredited non-profit organizations recognized by the government
d. Non-governmental organizations (NGOs)

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The following are the requisites for the bad debt expenseto be deductible, except:

Select one:
a. The existing debts must either be estimated or ascertained to be worthless
b. There must be an existing debt, which is valid, subsisting and demandable
c. The debts must be charged off within the taxable year
d. The existing indebtedness must be connected with trade, business or exercise of
profession

Question 10
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The following are the requisites for the charitable and other contributionsto be deductible,
except:

Select one:
a. The taxpayer giving charitable donations must be engaged in business, trade or exercise
of profession
b. Must be either for public or private purpose
c. The net income of the institution must not inure to the benefit of any individual or private
stockholder
d. There must be an actual contributions made
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