Final Examinations: Attempt History

9/18/21, 12:27 AM Final Examinations: [1203_CLWETAX_K32] - MICRO, SMALL & MEDIUM ENTERPRISES
Final Examinations
Due No due date Points 60 Questions 60
Available Sep 17 at 9:00 - Sep 18 at 11:59 1 day Time Limit 90 Minutes
Instructions
Final Examination Guidelines
This is your Final Examinations. It covers the topics relating to Taxation in the Philippines.
You will have 1.5 hours to complete the exams and only 1 attempt. You cannot leave the quiz in the
middle. DOING SO WILL BE TREATED AS AN ATTEMPT.
Examinations that exceed the 1.5 hour time limit will not be considered.
In multiple choice questions, please choose the best answer.
Before submitting your answer on each number, please make sure that your answer is final. Once
submitted you can no longer go back for it or be changed.
This is an independent Examinations; do not work with others.
You may use class materials (including the textbook) during the quiz.
Attempt History
Attempt Time Score
LATEST Attempt 1 69 minutes 53 out of 60
 Correct answers will be available Sep 18 at 13:00 - Sep 18 at 16:00.
Score for this quiz: 53 out of 60

Submitted Sep 18 at 0:20
This attempt took 69 minutes.
Question 1 1 / 1 pts
Business taxes are imposed on all businesses regardless of whether they

are earning income or not.
Course Chat 
https://dlsu.instructure.com/courses/66854/quizzes/132111 1/27
True
False
CocoFarms Inc. produces lambanog for sale to various outlets of

Robinsons Department Stores who sells these items to tourists and who
pays for in US dollars. Which of the following is correct?
CocoFarms Inc. is liable for both VAT and Excise in relation to their
lambanog
Send
CocoFarms Inc. is subject to both percentage tax and VAT in relation to

their lambanog.
CocoFarms Inc is liable for Percentage Tax but is VAT zero rated in relation
to their lambanog
CocoFarms is subject to both Pereentage Tax and Excise tax in relation to

their lambanog.
The transfer of a P5M condominium unit to a popular actor for endorsing

the development is not subject to...
Documentary Stamp Taxes
Income Tax
Percentage Tax
VAT
Music Making Co., an band, were hired as employees to perform at the

BAR 360 of Resorts World for a period of 3 months. They were paid 4.5M
for their performance. Which of the following statements is false?
The band is subject to VAT for their service.
The band is exempt from VAT.
The BAR is subject to VAT.
The BAR 360 is subject to Amusement Tax.
Given the following statements:
a) Gambling losses are deductible expenses
b) A company who gambles on a business venture that loses money is

not deductible as an ordinary and necessary expense
The first statement is true and second is false
Both statements are true
Both statements are false
The first statement is false but the second is true.
Which of the following government office cannot be a source of tax rules?
Congress
The President of the Philippines
The Bureau of Internal Revenue
The Supreme Court
VAT being based on the selling price of the item sold is an ad valorem tax.
True
False
a) Taxes intended to raise revenue to pay for government services

cannot have any other purpose.
b) Direct taxes are simple taxes that does not have any other purpose
except to generate funds for costs of government.
Which of the following statements are true?
Tuition paid by the employer for the college degree of its employees are
taxable income of the employee
De minimis is exempt provided it is declared as de minimisexceed the P90
Overtime pay of rank and file employees is not subject to income taxes
Loans given by the employee to its managers with interest less than
market rate makes the interest subject to FBT
VAT is...
A consumption tax
A liability of the buyer to the BIR
An ad valorem excise tax
A tax on the gross margins
Incorrect
Jose, an OFW had raised enough money for his wife to be able to operate
a parking business as a sole proprietorship to supplement the income of
the family. Jose normally calls her from abroad to ensure that she is
running the business in an orderly fashion and offers advise when
necessary. The wife was able to have an average gross income of
P200,000 a month. She also operates a small store selling food and
drinks at the carpark for the drivers waiting at the carpark which grosses
around P40,000 a month. In a stroke of inspiration, Jose called to instruct
the wife to install a coin operated karaoke machine for the entertainment
of the drivers waiting at the carpark which grosses another P10,000 a
month. Which of the following is correct?
The wife is subject to Percentage Tax for small businesses.
The husband and wife is liable for Percentage tax
The wife is subject to VAT for the business
The husband and wife is liable for VAT
Jose, an OFW had raised enough money for his wife to be able to operate
a parking business as a sole proprietorship to supplement the income of
the family. Jose normally calls her from abroad to ensure that she is
running the business in an orderly fashion and offers advise when
necessary. The wife was able to have an average gross income of
P200,000 a month. She also operates a small store selling food and
drinks at the carpark for the drivers waiting at the carpark which grosses
around P40,000 a month. In a stroke of inspiration, Jose called to instruct
the wife to install a coin operated karaoke machine for the entertainment
of the drivers waiting at the carpark which grosses another P10,000 a
month. Which of the following is incorrect?
The transfer of money by Jose to the wife for no consideration is subject to

transfer tax.
The business is not subject to VAT.
The wife is subject to amusement taxes for the karaoke machine.
The wife is subject to excise tax on alcoholic products.
The energy tax is imposed on the production of power.
True
False
Tuition fees paid to schools by their students are...
Subject to Excise Tax
Subject to VAT
Not subject to VAT
Subject to Percentage Tax
Excise tax is imposed as an exercise of police power and is not supposed

to generate revenue for the government.
True
False
Percentage taxes, being a percentage of the value or selling price of the

item being produced or sold is an ad valorem tax.
True
False
Sale of gasoline to a private airplane is exempt from VAT if its destination

is a foreign country.
True
False
The zoom call made by a Filipino in Manila to a friend in Singapore is
Not subject to any tax as it is done via the internet.
Subject to VAT
subject to Percentage Tax
Sugar Adjustment Taxes are sin Taxes.
True
False
Which of the following is not subject to VAT?
Sale of a car of the company to its employees.
Sale of excess office supplies by the Admin office of the taxpayer.
Sale of a car that was given to the company in payment of a debt by a

customer.
Sale of fully depreciated laptops of the company to its employees.
A jeepney driver's income is
Subject to Percentage Tax
Subject to VAT
Subject to Transfer Tax.
Incorrect Question 22 0 / 1 pts
a) A taxpayer who opts to use optional standard deductions is no longer

allowed to deduct his cost of sales from revenue
b) Minimum corporate income taxes cannot be charged against a

professional advertising company.
Reimbursements of overhead expenses spent by a service provider in

providing the service is subject to VAT.
True
False
Franchises, within the context of Franchise Tax, refer to special permits

issued by the government regulatory bodies of the Philippines to operate
in a particular industry or undertaking.
True
False
Non-life insurance companies are subject to VAT.
True
False
The road users taxes are imposed on the manufacture of automobiles.
True
False
Sale of Shabu cannot be subject to tax on narcotic drugs because they

are illegal.
True
False
1) A Corporation is liable only for MCIT or Regular Income Tax but not
both.
2) An individual who has a Gross Taxable Business Income of P3,000,000

cannot opt to use the Optional Computation of Income Tax to calculate its
tax.
The first statement is false and and second is true
The transfer of shares in a family owned corporation is ...
subject to percentage taxes on sale or exchange of shares of stocks
not subject to business taxes.
subject to VAT if its price exceeds P3M
subject to excise tax on miscellanous items
Non-Life Insurance Companies are subject to Percentage Tax.
True
False
Which of the following is not correct for 13th month pays?
They are mandatory pays to employees
They are exempt from taxes
They are subject to taxes
They are fully deductible business expenses
Sale of handicraft plaques of "footprints in the sand" made from lahar in

Pampanga are not...
subject to Excise Tax on Mineral Products
subject to VAT if the sale exceeds P3M a year.
subject to business taxes even if it is for charitable purposes.
subject to Percentage Tax if the sale does not exceed P3M a year.
Maria was a domestic helper for several years for a Singaporean Family
who worked in the Philippines, paying her a salary of P30,000 a month.
Last year however, due to the pandemic, the family she worked for had to
return to Singapore due to the pandemic in the Philippines but asked if
she would accompany them to work in Singapore for a salary equivalent
to P60,000 a month. She readily agreed to this and left with the Family at
the end of April 2020. Unfortunately, Singapore had also been hit by the
Pandemic and as such Maria had to be let go only after 3 months and she
returned back to the Philippines.
How much is Maria's Gross Taxable Income in the Philippines?
P360,000
P120,000
P300,000
None. Maria is an OFW.
Ken was the beneficiary of an insurance policy on the life of his

grandfather. The grandfather died. Which of the following is not correct?
Ken is not liable for Income Taxes on the insurance proceeds
Ken is subject to Income Taxes on the insurance proceeds
the insurance is subject to documentary stamp taxes
It is the estate of the grandfather who has to pay income tax on the
insurance proceeds
Tutors of a tutorial company is...
Not subject to VAT as they are employees
Are not subject to VAT as these pertains to education.
Are subject to percentage tax as small scale business.
Are subject to VAT as these are not tuitions.
Which of the following statements is false?
Deductions are included in the Gross Taxable Income of a taxpayer
Property lost by fire cannot be deducted as long as it is insured
Not all taxes paid by a taxapayer is deductible from his taxable income
Properties lost by fire can be the source of taxable income
Issuance of shares of stocks in an initial public offering of a closed

corporation are subject to...
Not subject to both percentage taxes and documentary stamp taxes.
Both Percentage Taxes and Documentary Stamp Taxes.
Documentary Stamp Taxes
Percentage Taxes
Josie is the owner of a small store in front of a school where she has a
weekly sale that averages at P80,000. Her cost of sales amounts to
about 50% of her sale and her monthly expenses for the business
includes P10,000 in rent, P5,000 in utilities and P5,000 for a helper.
Which of the following is not correct?
Josie can opt to calculate her tax on 8% of her gross income.
Josie can opt to use optional standard deductions in computing her net
taxable income.
Josie is not liable for any income tax.
Josie is exempt from taxation as here net taxable income does not exceed
P250,000.
International airlines that lands in the Philippines is subject to Percentage

tax on international carriers.
True
False
Fair Market Value is....
The value as set by an impartial valuator of properties.
The prevailing market price of the item.
The price a seller is willing to sell and a buyer is willing to buy, neither
being forced to sell or buy.
The value considered to be reasonable and fair by the market.
Domestic Carriers of cargoes are subject to VAT
True
False
Percentage Taxpayers can still be subject to VAT.
True
False
All communication made by the US Embassy in the Philippines to the US

State Department is exempted from the Overseas Communication Taxes.
True
False
Excise Taxes on miscellaneous items are intended to discourage or curb

the purchase of the items it lists under this classification even if they are
considered essential.
True
False
A transaction that is subjected to Percentage Tax cannot be subjected to

VAT.
True
False
Which of the following is a taxable fringe benefit?
Plane ticket and hotel accommodation to Singapore to attend a regional

meeting
Free accommodation in a 5 star hotel to attend a company seminar
1 week all expense paid trip to a manager
Free cruise on board the Royal Cruise Tour for employees.
Philip, a German national, who decided to retire in the Philippines, gets a

monthly pension from his country in the equivalent amount of P100,000 a
month. Of this amount, he spends roughly P25,000 a month in medicines

and another P50,000 a month in food. Which of the following is incorrect?
Philip is not liable for Philippine Income Tax.
Philip is a resident foreigner who is subject to income tax on income within

the Philippines.
Philip is a foreigner who cannot be taxed for his pension.
Philip is exempt from Philippine Income Taxes.
Taxes on tobacco products are specific taxes on tobacco.
True
False
Receivables from customers of a VAT registered taxpayer already

includes the VAT charge in the amount to be collected.
True
False
Documentary Stamp Taxes are...
privilege taxes on the transfer or sale of rights or properties.
taxes on all public documents.
taxes on the documents that evidences the rights or properties being

transferred or sold.
Taxes on the rights or properties transferred, sold or assigned in a

document.
Which of the following statements is true?
The President cannot refuse to implement a tax law
Congress can pass a law to tax the citizens of the Philippines for a
particular emergency purpose
Only congress can pass a tax law
Citizens of the Philippines can be taxed even if they are not in the
Philippines.
Personal calls made by a Filipino in Singapore to the Philippines is not

subject to overseas Communication Taxes.
True
False
Incorrect
a) General Commercial Partnerships are taxed as corporate taxpayers.
b) Estates are taxed as if it is an individual taxpayer
The first statement is false and the second is true
An agricultural cooperative registered with the CDA sold their agricultural

produce that is processed into shelf stable products like canned
vegetables, preserved fruits and freeze dried fruits to tourists and the
proceeds were used to buy machines for the use of the members. Which
of the following is correct?
Sale of their agricultural produce is no longer exempt as the produce is no

longer in its original state.
The agricultural cooperative is exempt from all of their sale transactions.
The sale of their agricultural produce even if it is not in its original state is
not VATable
The sale of their agricultural produce is zero-rated.
Fees collected from homeowners by Ayala Alabang Country Club for the
use of the facilities and services of the country club are...
Non-VAT
Vatable
Zero-rated
Subject to Amusement Tax
Foreigners who stay in the Philippines for a period not exceeding 1 year
cannot be subject to travel taxes.
True
False
Sugar adjustment taxes are excise taxes imposed to stabilize the sugar
industry of the Philippines.
True
False
a) Failure to comply with the basic principles of a sound tax system

makes the tax void.
b) Indirect taxes are those which are imposed on one taxpayer by can be
shifted to another taxpayer
Incorrect
a) Prizes of winners who won a "tax free" first prize in a raffle is still
taxable income
b) Prizes won by an employee during a Christmas party is still considered

to be income of the employee
Which of the following statement is not correct?
A VAT taxpayer can be registered as being subject to Percentage Taxes,

VAT Taxes and Excise Tax.
Services of doctors are subject to VAT.
A VAT taxpayer cannot be registered as a Percentage Taxpayer.
Sale of goods by the owner to clear up his storage space is not subject to
VAT.
Quiz Score: 53 out of 60

Final Examinations: Attempt History

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Examinations: Attempt History

Uploaded by

Copyright:

Available Formats

9/18/21, 12:27 AM Final Examinations: [1203_CLWETAX_K32] - MICRO, SMALL & MEDIUM ENTERPRISES

 Correct answers will be available Sep 18 at 13:00 - Sep 18 at 16:00.

Score for this quiz: 53 out of 60

Business taxes are imposed on all businesses regardless of whether they

CocoFarms Inc. produces lambanog for sale to various outlets of

CocoFarms Inc. is subject to both percentage tax and VAT in relation to

CocoFarms is subject to both Pereentage Tax and Excise tax in relation to

The transfer of a P5M condominium unit to a popular actor for endorsing

Documentary Stamp Taxes

Music Making Co., an band, were hired as employees to perform at the

The band is subject to VAT for their service.

The band is exempt from VAT.

The BAR is subject to VAT.

The BAR 360 is subject to Amusement Tax.

Given the following statements:

a) Gambling losses are deductible expenses

b) A company who gambles on a business venture that loses money is

The first statement is true and second is false

Both statements are true

Both statements are false

The first statement is false but the second is true.

Which of the following government office cannot be a source of tax rules?

The President of the Philippines

The Bureau of Internal Revenue

The Supreme Court

Given the following statements:

a) Taxes intended to raise revenue to pay for government services

The first statement is true and second is false

Both statements are false

The first statement is false but the second is true.

Both statements are true

Which of the following statements are true?

De minimis is exempt provided it is declared as de minimisexceed the P90

A liability of the buyer to the BIR

An ad valorem excise tax

A tax on the gross margins

The wife is subject to Percentage Tax for small businesses.

The husband and wife is liable for Percentage tax

The wife is subject to VAT for the business

The husband and wife is liable for VAT

The transfer of money by Jose to the wife for no consideration is subject to

The business is not subject to VAT.

The wife is subject to amusement taxes for the karaoke machine.

The wife is subject to excise tax on alcoholic products.

The energy tax is imposed on the production of power.

Tuition fees paid to schools by their students are...

Subject to Excise Tax

Not subject to VAT

Subject to Percentage Tax

Excise tax is imposed as an exercise of police power and is not supposed

Percentage taxes, being a percentage of the value or selling price of the

Sale of gasoline to a private airplane is exempt from VAT if its destination

The zoom call made by a Filipino in Manila to a friend in Singapore is

Not subject to any tax as it is done via the internet.

Subject to Excise Tax

subject to Percentage Tax

Sugar Adjustment Taxes are sin Taxes.

Which of the following is not subject to VAT?

Sale of a car of the company to its employees.

Sale of excess office supplies by the Admin office of the taxpayer.

Sale of a car that was given to the company in payment of a debt by a

Sale of fully depreciated laptops of the company to its employees.

A jeepney driver's income is