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Multiple-Choice- Problem 1

1. Mrs. Belle, self-employed, generated the following receipts during the year:
Proceeds of Health Insurance
Receipts from business advisory services
Receipts of rentals from boarding house

P

300,000
250,000
100,000

What is the total amount subject to business tax?
a. P 100,000
c. P 350,000
b. P 250,000
d. P 650,000
2. A person engaged in business sold the following properties:
Sales of goods held for sale
Sales of personal residence
Sales of personal car

P 200,000
2,200,000
500,000

Compute the sales in the course of business subject to business tax.
a. P 0
c. P 2,200,000
b. P 200,000
d. P 2,700,000

3. Mr. Julio, employed, received the following from his employer:
Proceeds of property insurance
Proceeds of bank loan
Compensation income

P 200,000
300,000
500,000

What is the amount subject to business tax?
a. P 0
c. P 300,000
b. P 200,000
d. P 500,000
4. Mr. Jun Kim, a security broker effected the sales of sale of several securities resulting of
Kim Jong-un in the following commissions:
Sales
Commission
Sales of stocks
P 120,000
P
1,200
Sales of bonds
280,000
2,800
Total
P 400,000
P
4,000
Compute the amount of receipts or sales of Mr. Jun Kim subject to business tax.
a. P 0
c. P 400,000
b. P 4,000
d. P 404,000
5. Assuming Kim Jong-un is an investor in stocks, what is the amount subject to business tax?
a. P 0
c. P 400,000
b. P 4,000
d. P 404,000
6. Mr. Masipag had annual gross receipts not exceeding P 100,000. During the month, he
made the following sales:
Sales of car rugs
Sales of cigarettes
Sales of candies
Total
Compute the total amount subject to business tax.

P 2,000
3,000
3,000
P 8,000

sold the following during the month: Sales of securities for own account Commission income on sale of securities of clients Sale of vacant lot held as investment P 400. a merchandiser.000 7.000 9. P 500. A non.000 200. P 230.000 Compute the amount subject to business tax.000 1. P 900.500 b. P 2. P 0 c.000 What is the amount subject to business tax? a.000 d.000 180.000 300.000 11. a.a.500 142.000 12.Mang Indio has a sari-sari store with P 500.500 d.000 to start a palay trading business.500 What is the amount subject to business tax? a. P 250. P 150. P 380.000 Compute the amount subject to business tax.000. P 430.000 7. P 7. During the month.000 . P 8.000 d.000 8. Mr.Mang Pandong is a farmer. P 0 c.000.000 for P 1.000 c.000 Sale of Souvenirs 200. made had the following sales during the month: Sale of merchandise Commission income from consignors Sales of stocks investments P 200. P 0 c.000 b.000 Donation from various donors 400.000 b. P 142. P 500.000 d. He sold his agricultural land costing P 200. P 5.000 50.Mr.stock charitable organization realized the following during the month: Membership contributions P 300. P 200. he has only one client from which he derived the following receipt: Professional fees Less: Withholding tax Net amount received P 150.000 b. a. P 0 c. a.000 b. He had the following sales during the month: Sales of various merchandise Cash donated by his brother Cash from proceeds of bank loan P 30. JDC Corporation.000 d.000 annual sales. P 530.000 d. P1. P 900. P 200. McCullot is a consultant. Kim Jong.000 b P 200. P 200. P 0 c. What is the amount subject to business tax? a.000 10. P 800. P 30.000 36. a security dealer.000.000 b.000 Compute the amount subject to business tax.000 d. P 0 c.

2016 d.000 300. In immediately preceding problem. what is the deadline of the first quarterly VAT return? a.000 d. had the following transactions in January 2015. P 62. June 25.000 Loan repayment 12. a. Kanlaon Corporation. June 20. 2016 Multiple-Choice.000 40. P 500. P 77. P 0 c. Cumacaliua is concurrently employed to Cumanan Corporation and Paatras Company. 2016 b.2015 c.000 150. The partnership adopted the calendar year basis. May 25. The professional partnership shall file its first monthly VAT return on a.000 d. P 460. December 25.2015 b. changed its accounting period to a fiscal year ending every August 30. P 480. paid in notes P 80.2015 15. A service provider had the following income during the month: Fees. Sunday Domingo formed a general professional partnership for the exercise of their legal professional.Effective 2015. August 30.000 P 22. May 20.000 Less: Creditable withholding tax 7. P 90. paid in cash and checks Fees.000 20.000 P 40.In the immediately preceding problem.Ms.000 6.000 SSS. HDMF Net pay P 3. November 25. 2014 b. October 25. Saturday Sabado and Atty.000 b.000 40.000 2.000 . Cash Sales Credit/ Installment sales (40% collected) Sales Returns and Allowances Freight-out charged to customers P 200.000 What is the amount subject to business tax? a. PhilHealth. He received the following during the month: Cumacanan Paatras Professional fees P 50. August 30. September 25. 2014 3. July 20. July 30. 2016 c. 2015 d. Jackpruit. August 20.000 Compute the amount subject to business tax. What is the deadline for the first quarter VAT return under the new accounting period? a. September 25. 2014 d. a VAT-taxpayer. 2014 c.000 b. 2014 b. July 20.2014 as a VAT taxpayer. P 0 c. Atty. Their partnership Sabado-Domingo Law Office started operation on July 1. the third quarterly VAT return shall be filed on before a.Problem 2 1.000 14. a seller of goods. 2014 c.13. August 25. 2014 4. 2014 d.

000 400.600.000 P 250.000 220.000 5.000 .000 Which is correct? a.000 P 240.000 P 250. The taxpayer is subject to percentage tax on all sales. P 160. The taxpayer is subject to percentage tax on all sales.000 d.000 P 640. P 140.700. The taxpayer is subject to percentage tax to taxable sales other than exempt sales.000 P 640. The taxpayer is subject to VAT on taxable sales other than exempt sales c. 6. P 200. d. 7.000 Which is correct? a.000 P 240.000 P 220.000 c. P 170.000 P 670.000 d.000 P 220. Which of these properly reflect the monthly reporting of a non-VAT seller of goods? January February March a. P 200.000 P 240.000 c.000 P 250. a.000 P 240. The taxpayer is subject to VAT on other sales b.000 P 240. The taxpayer is subject to VAT on all sales b. Which of these properly reflect the monthly reporting of a VAT service provider? January February March a. The taxpayer is subject to VAT on taxable sales other than exempt sales c.000 Which of these properly reflect the monthly reporting of a non-VAT service provider? January February March a. P 200. P 170.000 9.000 40. P 350.000 P 250. Kudarat Company had the following sales and receipts data in the past twelve months Exempt Sales Services subject to percentage tax Other Sales Total P P 200.000 d.000 Compute the amount subject to business tax.000 P 640.000 Total P 2.000 Other Sales 800.000 2.000 b.000 b.000 8. P 180.000 b.000 P 670. P 250. P 200.000 P 330.000 c.000 b.000 P 230. P 200.000 Services subject to percentage tax 400.500. A taxpayer had the following sales or receipt in the past twelve months: Exempt Sales P 1.000 P 250.000. The following data pertains to a business taxpayer during a quarter: January February March Revenue (Sales) P 200.000 P 220.000 240. The taxpayer is subject to percentage tax to taxable sales other than exempt sales.000 P 220.000 Cash Collections 180.000 2. P 180.000 P 240.Advances by clients for future services Reimbursement for out-of-pocket expenses Reimbursement for client expenses Total 20. d. P 170.000 20.000 P 220.

No-taste is engaged in the sale of service b. Bote sells cakes to jeepney drivers who patronize her hot and sweet cakes. The cancellation of the P 30.000.000. Mrs. Which is correct? a. he recorded only P 10.000 in sales and sustained an operating loss of P 40. respectively. P 27. Compute the business tax in October. P 180. Marilyn agreed to render services to Zeus.000 sales in October and November and paid P 12. P 36.000 P 220.c. Indeterminable 12. P 24. The taxpayer shall pay percentage tax d. b.000 16. 14. P 170.000 c.000 d.000 d. Which is correct? a.000 P 250.Marilyn is a beautician operating a beauty parlor. P 200.000 P 240. Zeus cancels Marilyn’s indebtedness. The cancellation of the P 30.000 d. P 9. In return.000 P 670. P 200. What is the amount to be reported for business tax purposes? a.000 b. Chemrex immediately registered to the VAT system at start of November 2014.000 indebtedness is a gratuity subject to donor’s tax b.000 worth of cakes and collected P 280.000 c. None b.000 P 240.The Non-Taste is a restaurant offering local cuisines.000 d.000. During the month.000 P 250. The cancellation of the P 30. Otherwise.000 10. The taxpayer shall pay VAT c.000. he shall pay percentage tax 15. P 9.000 indebtedness is exempt from income tax c. No-taste is engaged in the sale of goods c. assuming no claim for tax credit was filed a.000 P 250.000 P 220. During the month. The tax payer is exempt from business tax during the month since there is an operating loss.500 during the year. assuming Chemrex claim for tax credit and was approved by the BIR a. Chemrex generated P 300. No-taste is engaged both in sale of goods and service d.000 11. P 200.000 input vat in these month. Compute the business tax in October.919. P 300.000 and P 400.A is a VAT registered seller with annual sales of P 1.000 P 640. The taxpayer shall pay VAT if their annual sales exceeds P 1.000 P 240. a non-VAT taxpayer paying 3% percentage tax.000 . No-taste is not engaged in business 13.000. Bote sold P 300. Unable to pay her debt.000 indebtedness is a constructive receipt of Marilyn subject to tax d. exceeded the VAT threshold on September 2014. The cancellation of the P 30.000 and P 28.000 indebtedness is a constructive receipt of Zeus subject to business tax.000 P 220.000 b. P 280.000 b. Which is correct? a. She is indebted to Zeus for P 30.Which of these properly reflect the monthly reporting of a VAT seller of goods? January February March a. P 24.000 c.000 P 670.Chemrex Company. P 180.Mrs.

000 19. P 3. P 36. P 6.000 b. P 3.A VAT taxpayer received P 52.300 20. P 24. P 5.Compute the business tax in October.000 17. P 5. P 27. Compute the percentage tax a.000 c. Chemrex filed for her claim for tax refund a. P 36.Compute the business tax payable in November a. P 3. What is the output VAT? a.000 creditable withholding ta certificate. P 9.000 CWT from the sales of services by the period.000 18.000 cash and P 6.000.000 d. P 12.000 b. P 3.120 c.000 d. P 20.000 d. plus P4. P 5.A non-VAT taxpayer paying 3% percentage tax received P 104.000 b. P 27.571 b.240 d.000 c. P 36.000 .760 c.820 d.c. P 48.