1.

Taxation is the process by which our government, raises income to pay its necessary
a. Taxes b. expenses c. income d. assets
2. This is a kind of income received by employees working in different companies. This is often in
the form of salaries, bonuses, and allowances.
a. Police power b. Passive Income c. Compensation d. Gross income
3. The primary purpose of taxation is to provide the proper needed to run the government.
a. Expense b. compensation c. assets d. funding
4. This is the power of the government to take private property, upon payment of just
compensation, to be used for a public purpose.
a. Police power c. Administrative feasibility
b. Eminent domain d. People power
5. The power of the government to collect taxes that will be used to finance the different projects
needed by the people.
a. Police power c. Administrative feasibility
b. Eminent domain d. People power
6. These are amounts that can be deducted to certain individuals from their gross income before it
will be subjected to the income tax table.
a. Income tax c. Personal exemption
b. Eminent domain d. Compensation
7. The burden of taxation should be proportionate to the ability of the taxpayer to pay it. What
principle is this?
a. Administrative feasibility c. Theoretical justice
b. Fiscal adequacy d. None of the above
8. This is the power of our government to make laws that will promote public health, morals,
safety, and welfare of the people.
a. Police power c. Administrative feasibility
b. Eminent domain d. People power
9. He or she is a citizen of a foreign country but resides here in the Philippines during the taxable
year.
a. Resident alien b. Non-resident alien
10. He or she is a citizen of a foreign country and does not reside here in the Philippines.
a. Resident alien b. Non-resident alien