Our Lady of the Pillar College San Manuel, Inc.

District 3, San Manuel, Isabela

COLLEGE OF ACCOUNTANCY

NAME: _________________________________________DATE: ______________

MULTIPLE CHOICE. Select the correct answer for each of the following
questions. Encircle the letter corresponding to your chosen answer.

1. Excise tax shall apply to certain 6. Taxes imposed to restrain luxury

goods intended for a. Sin tax
Domestic b. Sumptuary tax
Consumption Foreign Consumption c. Green tax
a. Yes Yes d. Vanity tax
b. Yes No
c. No Yes 7. Which could not be considered a
d . No No green tax?
a. Tax imposed upon mineral products.
2. Excise tax shall apply to certain b. Tax imposed upon petroleum
goods that are products.
Locally Produced Imported c. Tax imposed upon jewelry.
a. Yes Yes d. Tax imposed upon quarry materials.
b. Yes No
c. No Yes 8. Which could not be considered a
d. No No vanity tax.
a. Tax imposed upon jewelry.
3. Excise that are imposed based on b. Tax imposed upon champagne.
weight or volume capacity or other c. Tax imposed upon automobiles.
physical unit of measurement d. Tax imposed upon cosmetic surgery.
a. Specific tax
b. Ad Valorem tax 9. Sin taxes is not imposed on
c. Quantitative tax a. Wines
d. Metrical tax b. Cigars
c. Cosmetic surgery
4. The excise tax on certain excisable d. Sweetened beverages
goods is a tax on
a. Person – the owner or producer of 10. The excise tax on certain goods or
certain goods services is not a
b. Property – the goods produced or a. Direct tax
manufactured. b. National tax
c. Privilege – the right to enter into a c. Indirect tax
business of producing or importing d. Tax on domestic consumption
certain articles.
d. Privilege – the right to transport 11. Which of the following does not
certain goods. properly describe excise tax on certain
goods or services?
5. Taxes imposed on substance known a. Sin tax
to harm health b. Vanity tax
a. Sin tax c. Environmental tax
b. Sumptuary tax d. Thumb tax
c. Green tax
d. Vanity tax 12. Excise tax on locally produced
excisable goods shall be paid
 Our Lady of the Pillar College San Manuel, Inc.
District 3, San Manuel, Isabela
COLLEGE OF ACCOUNTANCY

a. Within 15 days from the removal of c. Refined sugar

the goods d. All of the above
b. Upon removal of the goods
c. Before the removal of the goods 17. The excise tax on minerals does
d. Upon sales of the goods not apply to?
a. Diamond and sapphire
13. The tax due on non-metallic b. Gold, chromite, copper, silver or iron
mineral or mineral products or c. Natural gas
quarry resources, shall be due and d. Indigenous petroleum
payable
a. Within 15 days from the removal of 18. Which statement is false?
the goods a. Manufacturers and importers are
b. Upon removal of the goods subject to ad valorem tax on their net
c. Before the removal of the goods selling price,
d. Upon sale of the goods net of excise tax and ad valorem tax
b. To be considered hybrid vehicles, the
14. Which statement is false? vehicle must be able to run using solely
a. Cigarettes are subject to specific tax electric
b. All excisable petroleum products are motor
subject to specific taxes c. Automobiles used exclusively within
c. All excisable jewelries are subject to Freeport zone shall be exempt from
ad valorem tax excise tax
d. All excisable automobiles are subject d. Buses, trucks, cargo vans, and
to specific tax jeepneys shall be considered as
automobiles for
15. HKG, Inc. produced and purposes of the excise tax
withdrawn 1,000,000 units of
excisable goods X which is subject 19. Which is subject to the 20%
to P1/unit excise tax. HKG, Inc. uses jewelry tax?
goods X to manufacture Product Y a. Dental gold alloys or gold tooth
which is sold fillings
domestically and abroad, 50,000 units b. Silver plated wares
of Product Y was produced out of c. Gold plated frames or mountings for
which 30,000 eyeglasses
units were exported. Which is d. Pearls
incorrect?
a. Excise tax is payable only on the 20. Which is not a sin product?
400,000 units of goods X. a. Chewing tobacco
b. HKG, Inc. shall pay P1,000,000 in b. Distilled spirits
excise tax c. Cigarettes
c. HKG, Inc shall claim tax credit or d. Jewelry
refund for P600,000
d. None of these

16. Which of the following

agricultural products is subject to
excise tax?
a. Tobacco rolls
b. Ground coffee