Income Taxation Midterm EXAM PDF

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INCOME TAXATION MIDTERM EXAMQuestion 1Incorrect Mark 0 out of 1.Flag questionQuestion text Which of the following income is subjected to a monthly creditable withholding tax?Select one:a. Winningsb. Income from tradingc. Salariesd. 13 th month payFeedback Your answer is incorrect.The correct answer ...

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INCOME TAXATION MIDTERM EXAM Question 1 Incorrect Mark 0.00 out of 1.00

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Question text Which of the following income is subjected to a monthly creditable withholding tax? Select one: a. Winnings b. Income from trading c. Salaries d. 13th month pay

Feedback Your answer is incorrect. The correct answer is: Salaries Question 2 Incorrect Mark 0.00 out of 1.00

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Question text These represent reductions of resources due to unintended destruction or deprivation of things. erhre

Answer:

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The correct answer is: Losses Question 3 Not answered Marked out of 1.00

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Question text It refers to the disposal through sale or exchange of ordinary assets or capital assets. Answer:

Feedback The correct answer is: Dealings in Property Question 4 Not answered Marked out of 1.00

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Question text Which of the following taxes incurred in the conduct of business is not allowed as deduction from business income? Select one: a. Documentary stamp tax b. Foreign income tax claimed as tax credit c. Import duties d. Local business taxes

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The correct answer is: Foreign income tax claimed as tax credit Question 5 Not answered Marked out of 1.00

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Question text Which of the following interest expense is deductible in full? Select one: a. Interest paid in advance b. Interest expense which is 20% of the interest income for the same year c. Interest on tax delinquency d. Interest on personal loan

Feedback Your answer is incorrect. The correct answer is: Interest expense which is 20% of the interest income for the same year Question 6 Not answered Marked out of 1.00

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Question text This income tax system is a combination of gross compensation income and/or net income from business, trade or profession to arrive at the total income subject to tabular tax rates. Answer:

Feedback The correct answer is: Global Income Tax System Question 7 Not answered Marked out of 1.00

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Question text Which of the following is required to be filed with quarterly income tax return? Select one: a. Passive income b. Capital gain c. Compensation income d. Business income

Feedback Your answer is incorrect. The correct answer is: Business income Question 8 Not answered Marked out of 1.00

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Question text Which of the following is a subject to a creditable withholding tax at source? Select one: a. Gain on sale of shares of stock

b. Royalties c. Sale of family home d. Holiday pay

Feedback Your answer is incorrect. The correct answer is: Gain on sale of shares of stock Question 9 Not answered Marked out of 1.00

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Question text All of the following taxes are classified as income taxes, except Select one: a. 20% royalty tax b. ½ of 1% tax on the selling price of shares of stock traded in the local stock exchange c. 6% capital gains tax on sale of land d. 10% dividend tax

Feedback Your answer is incorrect. The correct answer is: 20% royalty tax Question 10 Not answered Marked out of 1.00

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Question text It is a sale or disposition of stock or securities where substantially identical securities are acquired or purchased within a 61-day period, beginning 30 days before the sale and ending 30 days after the sale. Answer:

Feedback The correct answer is: Wash Sales Question 11 Not answered Marked out of 1.00

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Question text One of the following is not creditable against the total computed tax per ITR Select one: a. Income tax paid for the first three quarters for the business per ITR b. Creditable withholding tax on compensation c. Final withholding tax d. Foreign income tax paid by the resident citizen

Feedback Your answer is incorrect. The correct answer is: Final withholding tax Question 12 Not answered Marked out of 1.00

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Question text If the casual loss on business property is partial, the deductible loss is the Select one: a. Actual cost of damaged on business property b. Replacement cost of the damaged property c. Lower amount between a and c d. Book value of the damaged property

Feedback Your answer is incorrect. The correct answer is: Lower amount between a and c Question 13 Not answered Marked out of 1.00

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Question text Interest on loans granted by the employer to employee are taxable fringe benefit when the interest rate is Select one: a. Lower than 12% b. 18% and above c.

Above 12% d. 12%

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Question text Which of the following is not true? Select one: a. Fringe benefit tax is a creditable withholding tax b. Fringe benefit tax of a managerial employee is subjected to final income tax c. Fringe benefit tax rate is 32% d. Fringe benefit tax is an income tax

Feedback Your answer is incorrect. The correct answer is: Fringe benefit tax is a creditable withholding tax Question 15 Not answered Marked out of 1.00

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The monetary value of fringe benefit if given in money is: Select one: a. Depreciated value b. Fair market value or zonal value whichever is higher c. Amount granted d. Acquisition cost plus other incidental costs

Feedback Your answer is incorrect. The correct answer is: Amount granted Question 16 Not answered Marked out of 1.00

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Question text It represents basic interest of ownership in a corporation. Stockholders holding common shares are called common stockholders. Answer:

Feedback The correct answer is: Common Stock Question 17 Not answered Marked out of 1.00

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Which of the following will be an appropriate deductible expense for the exhaustion of intangible asset of wasting asset corporation? Select one: a. Depreciation expense b. Amortization expense c. Depletion expense d. Exploration expense

Feedback Your answer is incorrect. The correct answer is: Depletion expense Question 18 Not answered Marked out of 1.00

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Question text It must be imposed directly upon the taxpayer. Answer:

Feedback The correct answer is: Tax Question 19 Not answered Marked out of 1.00

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The taxpayer’s income tax is fixed or computed based on the gross income. The usual allowable deductions are completely disregarded in computing this income tax. Answer:

Feedback The correct answer is: Gross Income Tax System Question 20 Not answered Marked out of 1.00

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Question text As a rule, business expenses are deductible only if they are incurred in relation to the business income taxable in the Philippines. If a business expense could not be traced whether incurred within or not, such expense shall be allocated based on the gross income within and without.

Answer:

Feedback The correct answer is: Situs of Expenses Question 21 Not answered Marked out of 1.00

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Question text The gains or losses on short sales are capital asset transactions. Answer:

Feedback The correct answer is: Short Sales

Question 22 Not answered Marked out of 1.00

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Question text Those who are citizens of the Philippines at the time of the adoption of the 1987 Philippine Constitution. Answer:

Feedback The correct answer is: Filipino Citizen Question 23 Not answered Marked out of 1.00

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Question text “Any good, service, or other benefit furnished or granted by an employer, in cash or in kind, in addition to basic salaries, to an individual. Answer:

Feedback The correct answer is: Fringe Benefit Question 24 Not answered Marked out of 1.00

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Question text They provide current and future benefits in business operations.

Answer:

Feedback The correct answer is: Capital Expenditures Question 25 Not answered Marked out of 1.00

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Question text Which of the following is deductible from related gross income? Select one: a. Net operating loss carry-over b. Loss on exchange of capital assets c. Loss of business property due to theft d. Worthless and written-off trade receivables

Feedback Your answer is incorrect. The correct answer is: Worthless and written-off trade receivables Question 26 Not answered Marked out of 1.00

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Question text In general, which of the following incomes is not allowed to be reduced with personal exemption Select one:

a. Passive income b. Compensation income c. Professional income d. Business income

Feedback Your answer is incorrect. The correct answer is: Professional income Question 27 Not answered Marked out of 1.00

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Question text Which of the following is the correct amount of additional personal exemption? Select one: a. 25,000 for each qualified dependent child b. 25,000 for senior citizen c. 8,000 for each qualified dependent child d. 20,000 for each dependent sibling

Feedback Your answer is incorrect. The correct answer is: 25,000 for each qualified dependent child Question 28 Not answered Marked out of 1.00

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Question text Which of the following is classified as deductible loss? Select one: a. Depreciation b. All of the above c. Allowance for bad debts d. Embezzlement

Feedback Your answer is incorrect. The correct answer is: Allowance for bad debts Question 29 Not answered Marked out of 1.00

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Question text Which of the following business travel expenses is not subjected to fringe benefit tax? Select one: a. Inland travel expense b. Hotel accommodation for $300 per day c.

Cost of economy airplane ticket d. All of the above

Feedback Your answer is incorrect. The correct answer is: All of the above Question 30 Not answered Marked out of 1.00

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Question text It is the exhaustion of the natural resources like mines, oil and gas wells due to production. Answer:

Feedback The correct answer is: Depletion Expense Question 31 Not answered Marked out of 1.00

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Question text They are usually called “period cost” because they are related to a particular period of time of business operation. Answer:

Feedback The correct answer is: Revenue Expenditures Question 32 Not answered Marked out of 1.00

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Question text It is a foreign-born person who is not qualified to acquire Philippine citizenship by birth or after birth.

Answer:

Feedback The correct answer is: Alien Question 33 Not answered Marked out of 1.00

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Question text A net taxable income of a nonresident alien sole proprietor of a cinematographic film is subjected to a Select one: a. 25% final tax b. Normal tax of individuals c. 32% normal corporate income tax d. 10% special tax

Feedback Your answer is incorrect. The correct answer is: 25% final tax

Question 34 Not answered Marked out of 1.00

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Question text Which of the following taxes included in the conduct of business is allowed as deduction from business income? Select one: a. Community tax b. VAT c. Withholding on wages of employees d. Income tax

Feedback Your answer is incorrect. The correct answer is: VAT Question 35 Not answered Marked out of 1.00

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Question text A taxpayer that allowed with both personal exemption and additional exemption is a/an Select one: a. Individual taxpayer

b. Estate and trusts c. Partnership d. Corporation

Feedback Your answer is incorrect. The correct answer is: Individual taxpayer Question 36 Not answered Marked out of 1.00

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Question text The following incomes are not allowed to deduct business expenses except Select one: a. Compensation income b. Passive income c. Professional income d. Capital gains

Feedback Your answer is incorrect. The correct answer is: Compensation income Question 37 Not answered Marked out of 1.00

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Question text The following individual taxpayers are granted basic and additional personal exemption except Select one: a. Nonresident alien engaged in trade or business in the Philippines with tax treaty reciprocity b. Nonresident citizen c. Partnership fully owned by resident Filipino citizen d. Resident citizen

Feedback Your answer is incorrect. The correct answer is: Partnership fully owned by resident Filipino citizen Question 38 Not answered Marked out of 1.00

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Question text It is an activity intended to make profit Answer:

Feedback The correct answer is: Business Question 39 Not answered Marked out of 1.00

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Question text De minimisWhich of the following fringe benefit received by a managerial employee is taxable with final income tax? Select one: a. Educational scholarship related to trade b. Free housing c. Foreign travel on account of business convention d. De minimis

Feedback Your answer is incorrect. The correct answer is: De minimis Question 40 Not answered Marked out of 1.00

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Question text It is a class of the stock refer to the shares of stock to be issued by the charter or by-laws with respect to dividends and/or assets in case of liquidation over the remainder of the stocks of the corporation which are called common stock. Answer:

Feedback The correct answer is: Preferred Stock Question 41 Not answered

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Question text Which value should be used as tax base to compute the fringe benefit on the property assigned for the use of employers? Select one: a. Fair market value of the property b. Fringe benefit value c. Cost of the property d. Equivalent rental value of the property

Feedback Your answer is incorrect. The correct answer is: Fair market value of the property Question 42 Not answered Marked out of 1.00

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Question text It is a corporation’s own stock that has been issued and then reacquired but not cancelled. Answer:

Feedback The correct answer is: Treasury Stock Question 43 Not answered

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Question text Which of the following is not included as entertainment, amusement and recreation expenses of a business? Select one: a. Fixed representation allowances of key officers subjected to WTH b. Amusement and recreation expenses c. Expenses incurred in accommodating company agents d. Depreciation or rental facilities

Feedback Your answer is incorrect. The correct answer is: Expenses incurred in accommodating company agents Question 44 Not answered Marked out of 1.00

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Question text Which of the following is a taxable fringe benefit? Select one: a. Employer’s tax payment on behalf of the employee b. 13th month pay and similar benefits in excess of 30,000php

c. Life insurance premium on the life of employee borne by the employer. d. All of the above

Feedback Your answer is incorrect. The correct answer is: All of the above Question 45 Not answered Marked out of 1.00

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Question text Which of the following amount of winnings/prizes is subjected to final tax of 20%? Select one: a. 10,000 winnings earned within the Philippines b. 10,000 winnings outside the Philippines c. 1,000,000 Philippines Sweepstakes winnings d. 9,000 first prize singing contest

Feedback Your answer is incorrect. The correct answer is: 10,000 winnings earned within the Philippines Question 46 Not answered Marked out of 1.00

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Question text Which of the following income is allowed to be reduced with itemized deductions? Select one: a. Compensation income b. Business income c. Capital gain d. Passive income

Feedback Your answer is incorrect. The correct answer is: Business income Question 47 Not answered Marked out of 1.00

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Question text It represents basic interest of ownership in a corporation. Stockholders holding common shares are called common stockholders. Answer:

Feedback The correct answer is: Common Stock Question 48 Not answered Marked out of 1.00

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Question text Which of the following is entitled to claim NOLCO? Select one: a. OBU b. Self-employed individual c. Employees with respect to his compensation income d. Foreign international carrier

Feedback Your answer is incorrect. The correct answer is: Self-employed individual Question 49 Not answered Marked out of 1.00

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Question text Which of the following taxes are not allowed as deductions from reportable gross income, except Select one: a. Capital gains tax b. Stock transaction tax c.

Documentary stamp tax d. VAT

Feedback Your answer is incorrect. The correct answer is: Documentary stamp tax Question 50 Not answered Marked out of 1.00

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Question text It is absorption of a corporation by another corporation, the latter retaining its own name and identity and acquiring the assets, liabilities, franchises, and powers of the former, and the absorbed corporation ceasing to exist as a separate juridical person. Answer:

Feedback The correct answer is: Merger...