MULTIPLE CHOICE PROBLEM PART 1

1. Free company, a resident business renders services to
Mr. Erlwin, a resident person who is not engaged in
business.
Which of the following is subject to consumption tax?
a. Free company
b. Mr. Erlwin
c. Both A and B
d. Neither A nor B
2. Baliwag Company , a non resident business,
purchased P200,000 from Cauayan company, a resident
business. Which will pay the consumption tax on this
transaction?
a. Cauayan Company
b. Baliwag company
c. Both A and B
d. Neither A nor B
3. Heidenberg corporation , a resident business ,
purchased P 100,000 goods from Kiwi Company , a non
resident business. Which will pay consumption tax on this
transaction?
a. Heidenberg company
b. Kiwi Corporation

Cavite’s business taxation? a. Which is subject to consumption tax with respect to this transaction? a. Mr. Cedric. Corneto c. Both A and B d. Both Mr Bangus and Mrs Tulya.c.Tulya 6. Neither Mr. Neither A nor B 5. an employee sold his residential lot to Mrs. Tulya. Corneto a real property dealer . a resident buyer. Neither A nor B 4. Mr. Bangus nor Mrs. Tulya c. Mr. Bangus made a casual sale involving a car to Mrs. Cavite subject to either VAT or percentage tax b. Mr Bangus b. Cavite produces an excisable article for the sale in the Philippine market. A and B d. Cedric b. Mrs. Mr . Mr. Mr. Which is subject to consumption tax? a. Mrs. Bangus is not a car dealer . Mr. d. Which is incorrect with respect to Mr. Cavite pays excise tax in addition to VAT or percentage tax .

000 . Cavite will pay excise tax without regard to whether he is a VAT or non VAT taxpayer.000 b.c. A person who imports goods or properties will more likely to pay . At what amount shall the business invoice the sale? a.800 9. Mr. Mr. P 110. He has inventories of goods in his possession which cost 77. P 41. 7.P103.P 38. d.000 d. Cavite pays excise tax in addition to VAT and percentage tax. The business is subject to 3% percentage tax.P100.000 profit from the sale of an inventory costing P 30.600 which he intends to sell to earn mark up of 25% of cost net of the 3% business tax? a. P 40. 000 8. P 41. A person engaged in business is subject to 3% business tax. A business wants to make P10.000 d.237 b.200 c.000 c.P 97.

P 0 b. Ventura is subject to 3% percentage tax.180 d P 12. He will pay a. 112. a. What will be invoice price of the sale? a.000 c. P 6. a 12% VAT on the importation c. He made total collection of P206. P 3.000 12. P 0 . Mr.000 during a month and paid P103. A person who is not regularly engaged trade or business sells made a casual sale of property for P 100. a 3% percentage tax on the importation b. Either B or C 11. no consumption tax 10.100.103.000 in purchases. either 3% or 12% tax on the importation d.000.a. Alison is regularly engaged in the sales of goods.000 d. Compute his percentage tax.000 b.000 c.

120 000 . A business taxpayer purchased P120. P 3.000 c. 140 000 c. 140.180 d. In the immediately preceding problem. 180 000 15. 140 000 c. P 6. 200 000 b.000 b. Assuming the same data in the above problem . P 12.000 from non residents and sold goods worth P140 000 for 180. 80 000 d.b. 200 000 b.000 c. what is the basis of the VAT om importation? a. what is the basis of percentage tax? a.000 13. 120 000 d. 60 000 14. 200.000 What is the concept of “value added “ for VAT purposes? a.

What is the amount subject to the VAT on importation? a .300 000 c .d. Coroneti imported P 300 000 equipment for business use and a P 1 200 000 car for personal use. a. 80 000 16. 350 000 .0 b . A business taxpayer had the following purchase and receipts: Import of goods or services P 190 000 Domestic purchase of goods or services P 100 000 Domestic sales of goods and services Export Sales of goods or services P150 000 P 50 000 Determine the total amout of which will be subject to consumption tax to the business tax payer. Mr.1 200 000 d. 400 000 c. 500 000 b. 1 500 000 MULTIPLE CHOICE PART 2 BASIC CASE 1 1.

36 000 c. What is the Input VAT ? . 190 000 Basic Case 2 3. 48 000 b. 12 000 4. determine the amount subject to consumption tax if the tax payer is not engaged in business/ a. A VAT – registered taxpayer recorded the following sales and purchases during the month Sales P 300 000 Purchases P 200 000 All amounts above are exclusive of any VAT. 24 000 d. 490 000 b. 340 000 2. In the immediately preceding problem .d. What would be the Output VAT? a. 390 000 c. 200 000 d.

24 000 d.000 Basic Case 3 A business taxpayer recorded the following transactions during the month: Philippines Abroad Total Sales 350 000 200 000 550 000 Purchases 150 000 100 000 250 000 TOTAL 500 000 300 000 800 000 .a. the percentage tax shall be a. Assuming the taxpayer is a non vat taxpayer paying 3% percentage tax. 12 000 6. 6. What is the VAT payable ? a. 24 000 d. 12 000 5. 36 000 c. 9 000 c.000 d. 48 000 b. 48 000 b. 12 000 b. 36 000 c. 3.

a. 0 b. 18 000 d. Compute the VAT on importation. Compute the percentage tax. 24 000 c. 32 000 Assuming the taxpayer is a non VAT taxpayer 9. 10 500 10. Compute the VAT on importation . 9000 d.Assuming that taxpayer is a Vat registered taxpayer 7. 36 000 d. 12 000 c. 0 b. 0 b. a. 6000 c. 0 b. 3000 . Compute the Output VAT. a. 42 000 8. a.

96 000 b. P 24 000 : P 144 000 c.c. what is the total business tax it will report on its sales? a. 18 000 BASIC CASE 4 Sandigan Company a VAT registered taxpayer . 0 12. 48 000 c. a P 96 000 : P 144 000 b. 24 000 d. P 24 000 : P 72 000 d. Assuming that the business operation of Sandigan company is limited to Philippine residents . purchased 400 000 worth of goods and sold at the same for P 800 000 11. 12 000 d. P 0 : 48 000 . Assuming that the purchases were import and the sales were exports compute the business tax and total consumption tax respectively.