MIDTERM QUIZ 1
1. Which of the following will be liable to VAT if its annual sales is more than P3,000,000?
a. Taxi operator
b. Jeepney operator
c. Sari sari store operation
d. Karaoke/video oke operator
2. The taxable income of irrevocable trust is returnable in form
a. 1700
b. 1701
c. 1702
d. Any of the above
3. Which of the following is not correct deadline for the income tax return of self employed individual?
a. 1st quarter= April 15
b. 2nd quarter = August 15
c. 3rd quarter = November 15
d. Annual ITR = April 15 of following year
4. Which of the following is not correct deadline for the income tax return of corporation using calendar
year?
a. 1st quarter= May 15
b. 2nd quarter = August 30
c. 3rd quarter = November 30
d. Annual ITR = April 15 of following year
5. The withholding tax reported in this report is creditable in ITR 1701 or 1702 of the income earner
a. 1604 C
b. 1604 D
c. 1604 E
d. 1604 F
6. Which of the following is an attachment to ITR 1701 or 1702
a. 2306
b. 2307
c. 2316
d. 1706
7. Which of the following could not us fiscal year as it tax period?
a. Sole proprietorship business
b. General professional partnership
c. Domestic corporation
d. Resident foreign corporation
8. The following amounts received and increase in net worth are exempt from Internal Revenue taxes,
except
a. Proceeds of life insurance policy
b. Bequests received
c. SSS/GIS benefits received
d. None
9. The following are compensation income, except
a. Overtime pay
b. Hazard pay
c. Professional fee
d. 13th month pay
10. The following are the several forms of compensation income, except
a. Night shift differential
b. Hazard pay
c. Separation pay
d. Royalty income
11. The following are passive income, except
a. Rent income
b. Dividend income
c. Winnings
d. Gain from sale of real property
12. The following are not required to be reported in the annual income tax return subject to normal income
tax rate, except
a. Income collected with final withholding tax
b. Income exempt from income tax
c. Income collected with creditable withholding tax
d. None
13. STATEMENT 1, Final and creditable withholding taxes are the liability of the payor of income to remit the
amount to BIR account.
STATEMENT 2, The tax base of the final withholding tax is the gross amount of income.
A TRUE, TRUE
B TRUE, FALSE
C FALSE, TRUE
D FALSE, FALSE
14. The total assets of the taxpayer are as follows:
Beginning of the year P800,000
End of the year P1,000,000
His liabilities are;
Beginning of the year P400,000
End of the year P100,000
His income for the year is
a. 200,000
b. 400,000
c. 500,000
d. 900,000
15. The following are increases in net worth of the taxpayer;
Interest received P100,000
Dividend received 400,000
Gift received 200,000
Property inherited 800,000
Salary received 360,000
SSS benefit received 140,000
His income for the year is
a. 2,000,000
b. 1,800,000
c. 860,000
d. 360,000
16. The following are increases in net worth of the taxpayer;
Interest received P100,000
Dividend received 400,000
Gift received 200,000
Property inherited 800,000
Salary received 360,000
SSS benefit received 140,000
His passive income for the year is
a. 860,000
b. 500,000
c. 400,000
d. 100,000
17. For the year, the following sales were made by the taxpayer;
Selling price Cost
Investment is stock 500,000 300,000
Family car 300,000 200,000
Inventory 900,000 750,000
Company equipment 1,000,000 800,000
The gross income for the year is
a. 650,000
b. 350,000
c. 300,000
d. 150,000
18. For the year, the following sales were made by the taxpayer;
Selling price Cost
Investment is stock 500,000 300,000
Family car 300,000 200,000
Inventory 900,000 750,000
Company equipment 1,000,000 800,000
The gross business income for the year is
a. 650,000
b. 350,000
c. 300,000
d. 150,000
19. The taxpayer reported the following for his salary from employment;
Basic salary P360,000
Overtime pay 60,000
Holiday pay 50,000
Night shift differential 40,000
13th month pay and similar benefits, P60,000
How much is his compensation income?
a. 570,000
b. 510,000
c. 470,000
d. 360,000
20. The taxpayer reported the following for his salary from employment;
Basic salary P360,000
Overtime pay 60,000
Holiday pay 50,000
Night shift differential 40,000
13th month pay and similar benefits, P60,000
How much is his taxable compensation income if his basic pay is above minimum wage?
a. 570,000
b. 510,000
c. 60,000
d. none
21. This income if earned within the Philippines is normally collected with final tax at source
a. Compensation
b. Business
c. Passive
d. Capital gain
22. This income if returnable is reported in 1700
a. Compensation
b. Business
c. Passive
d. Capital gain
23. This income is adjusted with allowable itemized deductions to reduce the taxable amount
a. Compensation
b. Business
c. Passive
d. Capital gain
24. Which of the following is taxable with Philippine income tax on income earned within and outside the
Philippines?
a. A Filipino who physically present abroad most of the time during the taxable year;
b. A Japanese who stays in the Philippines for an aggregate period of 180 days or less
c. An alien wo stayed in the Philippines for an aggregate period of more than 180 days during
any calendar year
d. none
