Mock monthly Exam PDF

Preview

Summary

The process by which the sovereign raises income to defray the expenses of the government is called (RPCPA) * subsidy tariff taxation taxCorrect answertax One of the characteristics of internal revenue taxes is that they are (RPCPA) Criminal in nature Penal in nature Political in nature Generally pr...

Description

1. The process by which the sovereign raises income to defray the expenses of the government is called (RPCPA) * subsidy tariff taxation tax Correct answer tax

2. One of the characteristics of internal revenue taxes is that they are (RPCPA) Criminal in nature Penal in nature Political in nature Generally prospective in application Correct answer Generally prospective in application

3. In case of conflict between tax laws and generally accepted accounting principles (GAAP) (RPCPA) Both tax laws and GAAP shall be enforced GAAP shall prevail over tax laws Tax laws shall prevail over GAAP The issue shall be resolved by the court

Correct answer Tax laws shall prevail over GAAP

4. Which of the following has no power of taxation? (RPCPA) provinces cities barangays barrios Correct answer barrios

5. “Schedular system of income taxation” means (RPCPA) All types of income are added together to arrive at gross income. Separate graduated rates are imposed on different types of income Capital gains are excluded in determining gross income Compensation income and business/professional income are added together in arriving at gross income. Correct answer Separate graduated rates are imposed on different types of income

6. Which of the following statements is true? A. Opinions of legal luminaries are sources of tax laws. B. The Constitution grants exemption from all kinds of taxes to religious and charitable organizations. C. Because the power to tax is unlimited, comprehensive, plenary and supreme, the power to tax can reach over into any jurisdiction to seize upon person or property. D. The “benefits-protection theory” is the source of the “doctrine of symbiotic relationship”. Correct answer D. The “benefits-protection theory” is the source of the “doctrine of symbiotic relationship”.

7. One of the following is a primary purpose of taxation A. Protection of local industries against foreign competition through imposition of high customs duties on imported goods B. Reduction of inequalities in wealth and income by imposing progressively higher tax rates C. To secure revenue for the support of the government D. Strengthening of anemic enterprises by giving tax exemptions. Correct answer C. To secure revenue for the support of the government...