Scribd
Upload
133 views3 pages

Quiz in Income Tax

1. The document discusses various concepts in taxation including the definition of taxes, the primary purpose of taxation which is to raise revenue for governmental needs, and characteristics of taxes such as being compulsory and levied by virtue of sovereignty. 2. Key principles of taxation discussed include uniformity of taxation where similarly situated persons are treated the same, and the power to tax generally may not be delegated except to allow for administrative implementation. 3. The different stages of taxation including assessment, levy, collection, and payment are defined. The document also addresses scenarios to calculate gross income for tax purposes and recovery of bad debts.

Uploaded by

Mariz Allysa Orcajada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
133 views3 pages

Quiz in Income Tax

1. The document discusses various concepts in taxation including the definition of taxes, the primary purpose of taxation which is to raise revenue for governmental needs, and characteristics of taxes such as being compulsory and levied by virtue of sovereignty. 2. Key principles of taxation discussed include uniformity of taxation where similarly situated persons are treated the same, and the power to tax generally may not be delegated except to allow for administrative implementation. 3. The different stages of taxation including assessment, levy, collection, and payment are defined. The document also addresses scenarios to calculate gross income for tax purposes and recovery of bad debts.

Uploaded by

Mariz Allysa Orcajada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

1.

The process or means by which the sovereign, through its law-making body, raises
income to defray the expenses of the government
a. Toll
c. Taxation
b. License fee
d. Assessment

2. The proportional contribution by persons and property levied by the law-making body of
the State by virtue of its sovereignty for the support of the government and all public needs
is referred to as
a. Taxes
c. License fees
b. Toll
d. Assessment

3. The primary purpose of taxation is


a. To encourage the growth of some industries through the proper use of incentives
b. To implement the police power of the State
c. To reduce excessive inequalities of wealth
d. To raise revenue for governmental needs

4. Which of the following is not a secondary purpose of taxation?


a. To serve as key instrument of social control
b. To effect a more equitable distribution of wealth among people
c. To achieve social and economic stability
d. To raise revenue to defray the necessary expenses of the government

5. 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
c. Sumptuary theory
b. Lifeblood theory
d. Symbiotic doctrine

7. Treating persons who are similarly situated in the same manner


a. Uniformity of taxation
c. Due process of law
b. Equality of taxation
d. Non-delegation of legislative power

8. One of the characteristics of a tax is


a. A tax is a pecuniary burden and the law may not allow payment in kind
b. It is dependent upon the will or contractual assent, express or implied, of the person
taxed

QUIZ#1 Income Taxation Prof. Ber Dela Cruz


c. It is levied by the state by virtue of its sovereignty
d. It is collected for public and private purposes

9. One of the characteristics of internal revenue tax is that they are


a. Criminal in nature
c. Political in nature
b. Penal in nature
d. Civil in nature

10. Which of the following is a nature of taxation?


a. The power is granted by legislative action
c. It is generally payable in money
b. It is essentially an administrative function
d. Without it the state can continue to exist Final answer: None of the above

11. Being legislative in nature, the power to tax may not be delegated, except
a. To local governments or political subdivisions
b. When allowed by the Constitution
c. When delegation relates merely to administrative implementation that may call for some
degree of discretionary powers under a set of sufficient standards expressed by law or
implied from the policy and purpose of the Act
d. All of the choices

12. The official action of an officer authorized by law in ascertaining the amount of tax due
under the law from a taxpayer is
a. Assessment
c. Deficiency
b. Delinquency
d. Distraint

13. The actual effort exerted by the government to effect the exaction of what is due from
the taxpayer is known as
a. Assessment
c. Payment
b. Levy
d. Collection

14. Deals with the provisions of the law which determines the person or property to be
taxed, the sums to be raised, the rate thereof, and the time and manner of levying, receiving
and collecting taxes
a. Collection
c. Enforced contribution
b. Payment
d. Levy

QUIZ#1 Income Taxation Prof. Ber Dela Cruz


15. When the power to tax is delegated to the local government
a. Only the local executive can exercise the power
b. Only the legislative branch of the local government can exercise the power
c. The local executive and the legislative branch of the government can exercise the power
d. Neither the local executive nor the legislative branch of the local government can
exercise the power

1. In 2023, Ms. X earned P500,000 as income from her beauty parlor and received P250,000
as Christmas gift from her aunt. She had no other receipts for the year. She spent P150,000
for the operation of her beauty parlor. For tax purposes, her gross income for 2023 is
___________.

2. Given the data below, compute for the gross income.


Interest income on trade notes receivable P 30,000
Interest income from government bonds 50,000
Interest income from money market placements 20,000
Interest income on Banko Sentral bonds 100,000
Interest income on bank savings deposit 60,000

3. X was allowed to deduct P200,000 bad debts written off in 2022, where she had a net
income before bad debts of P180,000 and a net loss of P20,000. In 2023, she was able to
recover the bad debts written off in full. The bad debts recovery is ___________.

4. Mr. X leased his land to Mr. Y. The terms of the contract of lease is for fifteen (15) years
and the rental fee is P36,000 a year. The contract provides that Mr. Y, the lessee, will
construct a building and at the end of the term of the contract, the building will be owned
by Mr. X, the lessor. The building was constructed at a cost of P600,000 and has a useful life
of 30 years. Assuming Mr. X will spread his income over the term of the contract of lease,
for income taxpurposes, his yearly income is _________.

5. Compute for the gross income: Mr. X, a resident citizen had the following data on income
and expenses for taxable year 2023:
Gross business income 1,500,000
Business expenses 600,000
Interest from local savings deposit 150,000
Prize in a literary contest he joined 300,000
Prize received for scientific achievement (did not join contest) 30,000
Gain from sale of bonds (maturity is 6 years) 15,000
Separation pay from his former job due to retrenchment 750,000
Professional income 900,000
Amount received as return of premium 600,000
Revenues recovered by BIR due to Mr. X’s information 1,500,000

QUIZ#1 Income Taxation Prof. Ber Dela Cruz

You might also like