04/18/09

FINAL PRE-BOARD EXAMINATION

April 18, 2009
1. A made a negotiable promissory note payable to the order of B, a minor. Later, B
indorsed the note to C, then C to D and D to E. Which of the following is correct?
a. If E is aware that B is a minor, E cannot collect from A but can collect from D to
E
b. If E is a holder in due course, E can collect from A, and if A dishonors by nonpayment, E can collect from B, C or D
c. The indorsement by B to C did not make C a holder
d. Regardless of whether E is a holder in due course or holder for value, E can
collect form A
2. A made a negotiable promissory note payable to the order of B. Later, B made a
blank indorsement to C and delivered the note to D, who likewise delivered the note
to E. E made a special indorsement to F and F made a qualified indorsement to G.
Which of the following is correct?
a. The indorsement made by E is not necessary because the instrument was
converted to bearer, hence the indorsement made by G can be stricken out
b. C and D are not liable because they negotiated the instrument by delivery
c. If the instrument is dishonored by A, the present holder E cannot go after C
and D
d. Bs indorsement can be stricken out because Bs blank indorsement converted
the instrument to bearer
3. The holder, at his option may treat the instrument either as a bill of exchange or a
promissory note in any of the following, except
a. The drawee is a fictitious person
b. The drawee is a person not having the capacity to contract
c. The drawer and the drawee are the same person
d. The drawer and the payee are the same person
4. Which of the following statements is correct?
a. A holder of a negotiable instrument can be either a holder in due course or a
holder for value but not both in one instrument
b. A holder for value deriving his title from a holder in due course can enforce the
instrument against the maker who has a personal defense
c. A holder is one to whom a negotiable instrument payable to order was
delivered
d. A holder in due course is always a holder for value
5. The following are the requisites to be a holder in due course, except
a. That he took it in good faith and for value
b. That at the time it was negotiated to him, he has no knowledge of any
infirmity or defect in the title of the person negotiating it
c. That it is complete and regular upon its face when issued by the maker to the
payee
d. That he became a holder of it before it was overdue and without notice that it
had been previously dishonored if such was the fact
6. A promissory note reads:
I promise to pay B or bearer P20,000. Sgd. A.
B delivered the note to C. C indorsed the note to D. Then Y stole the note from D and
indorsed the note to E. E delivered the note to F. As a result
a.
b.
c.
d.

If A pays F in good faith, As obligation is extinguished

F can collect from D or E
F cannot be a holder in due course
F can go after indorsers C and Y
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7. A promissory note reads:

I promise to pay B or order P20,000. Sgd. A
B made a special indorsement to C and C made a conditional indorsement to D. If the
condition is not yet fulfilled, which of the following is correct?
a.
b.
c.
d.

If
If
If
If

a dishonors the note, D can collect from B to C

a pays D, As obligation is extinguished
A pays, A becomes liable if D fails to fulfill the condition
A dishonors the note D can collect from B but not from C

8. M issued a negotiable instrument payable to P or bearer, P indorsed and delivered

the instrument to A, who indorsed and delivered the note to B. Later, B delivered the
note to C, and C indorsed the note to D and D indorsed the same to E, the present
holder. Which is not correct?
a. P and A are liable as general indorsers but their secondary liability do not
extend to E
b. C and D are secondarily liable to E
c. If M dishonors the note, E can collect from any of the general indorsers
d. The title of E cannot be traced to the indorsement of P and A
9. A negotiable instrument is not discharged
a. By payment in due course by the party accommodated, where the instrument
is made or accepted for his accommodation
b. When the principal debtor becomes the holder of the instrument at or after
maturity in his own right
c. By payment in due course by or on behalf of the principal debtor
d. By intentional cancellation thereof by the indorser
10.Which of the following statements is false?
a. When a bill is dishonored by the acceptor for honor, it must be protested for
such dishonor
b. A drawee who accepts two parts of a bill in set may be liable to the holders of
both parts
c. Acceptance for honor may be made by the drawer
d. Payment for honor can be made only if there was prior protest for nonpayment
11.The sum is not certain, if it is to be paid
a. With interest
b. In installments
c. With exchange
d. With attorneys fees
12.Consider these two instruments:
I.
I promise to pay B or order P10,000, 30 days after date. Sgd. A.
II.
Pay to the order of B P10,000, 30 days after sight. Sgd. A.
a. Only I is negotiable
b. Only II is negotiable
c. Both are negotiable
d. Both are non-negotiable
13.M issues a negotiable promissory note payable to P or bearer. If the note is indorsed
by P to A and A negotiates the note by delivery to B. Which of the following is
correct?
a. M is not liable to B
b. P is liable to A and B
c. B can collect from either P or A
d. P is liable to A
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14.S sold his car to B on installments and a chattel mortgage was constituted on the car.
B defaulted in two installment payments. S foreclosed the chattel mortgage and sold
the car at a public auction. If there is deficiency?
a. Yes, even without stipulation
b. Yes, if there is stipulation
c. No, even if there is stipulation
d. No, unless there is stipulation
15.B borrowed P100,000 from S secured by a chattel mortgage on Bs car. The debt is
payable in installment. When B defaulted in 2 installment payments, S foreclosed the
chattel mortgage and sold the car at a public auction. If there is excess, who is
entitled to the excess?
a. S, even without stipulation
b. B, only if there is stipulation
c. S unless there is stipulation
d. B, even without stipulation
16.B pledged his ring to S. B failed to pay his obligation. S sold the ring at a public
auction. If there is deficiency, can S recover the deficiency?
a. Yes, if there is stipulation
b. No, even if there is stipulation
c. Yes, even without stipulation
d. No, unless there is stipulation
17.Real estate mortgage as distinguished from pledge
a. The sale of the thing extinguished from pledge
b. The debtor is entitled to the excess of the proceeds
c. The creditor bears the deficiency
d. Possession of the thing is with the creditor
18.Inadvertently, the SEC approved the Articles of Incorporation and issued a Certificate
of Incorporation to Wholesome Corporation. Thereafter it was discovered that the
incorporators have not completed the required period of residency in the Philippines.
As a result, which of the following is not correct?
a. The corporation shall be considered as de-facto corporation
b. The right to exercise corporate powers can be inquired into collaterally in any
private suit to which the corporation maybe a party
c. The corporation has no legal personality and the incorporators maybe held
personally liable for damages
d. The Solicitor General has the right to question or contest the validity of its
corporate existence through a quo-warranto proceedings.
19.In case of a managing partner collects a demandable debt from his debtor who also
owes the partnership a demandable debt, which of the following is not correct if
payments is not enough to cover the two debts?
a. The sum collected shall be applied to the partnership credit
b. It shall be applied to the two credits in proportion to their amounts
c. The debtor has the right to have the payment applied to his debt to the
partner if it should be onerous to him
d. The partner cannot apply the payment to his own credit
20.Mutuum as distinguished from commodatum
a. Object is movable
b. Loss maybe shouldered by the debtor
c. Loan for consumption
d. Expensed maybe shouldered by the debtor
21.The following are attributes of a corporation, except
a. At least 5 stockholders are incorporators
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b. Has a juridical personality
c. Created by operation of law
d. Has right of succession
22.May not require stockholders approval
a. Declaration of dividend
b. Management contract
c. Amendment of By-Laws
d. Removal of a director
23.Will require stockholders 2/3 approval
a. Election of corporate officers
b. Election of members of the board
c. Withdrawal of authority of the board to amend the by-laws
d. Amendment of by-laws
24.The drawee bank may refuse to pay checks drawn against it, except
a. If the drawer is insolvent
b. If there is a stop payment order issued by the drawer
c. If the drawers deposit is insufficient
d. When the drawee bank receives notice of the drawers death
25.A contract of loan is a
a. Consensual contract
b. Real contract
c. Formal contract
d. Solemn contract
26.Statement I Unless the by-laws provides, the Chairman of the Board presides the
meetings of the Board
Statement II Unless the by-laws provides, the President presides the meeting of
the stockholders.
a. True, true
b. True, false
c. False, true
d. False, false
27.Assume that the unpaid subscription of S for 10 shares with a par value of P100 each
is P400 and the expenses, interest and cost of sales amount to P50. Who is the
highest bidder if the bids are as follows
a. P400 for 5 shares
b. P450 for 6 shares
c. P450 for 7 shares
d. P450 for 8 shares
28.The pre-nuptial agreement of H and W, husband and wife, provides for complete
separation of property. Later, H, with violence and intimidation forced W to sell to
him (H), Ws pieces of jewelry. The sale is
a. Rescissible, if W suffered a lesion of more than of the value of the property
b. Voidable, because the consent of W is vitiated
c. Unenforceable, if the value is at least P500
d. Void, because husband and wife are not allowed to sell property to each other

29.Which of the following statements is not correct?

a. The vendor is responsible to the vendee for any hidden faults or defects in the
thing sold, even though he was not aware thereof
b. The agent shall finish the business already begun on the death of the
principal, should delay entail any danger
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c. The agent shall be bound to advance the necessary funds, except when the
principal is insolvent
d. In the execution of the agency, the agent shall act in accordance with the
instruction of the principal
30.A, B and C are co-owners of a parcel of land. A sold his 1/3 share on April 7, 2009, B
his 1/3 share on April 15, 2009 and C his 1/3 share on April 23, 2009, all to D and the
right of repurchase. Which of the following is correct?
a. A should redeem the whole property if he is required by D to do so
b. A can redeem the entire property even if D allows him to redeem only his 1/3
share
c. A can redeem his 1/3 share even if D requires him to redeem the whole
property
d. A may redeem his 1/3 share only if D allows him to do so
31.The following are the effects of unlawful partnership, except
a. The contract is void ab initio and the partnership never existed in the eyes of
the law
b. The profits shall be confiscated in favor of the government
c. The instruments, or tools and proceeds of the crime shall be forfeited in favor
of the government
d. The contributions of the partners shall be confiscated in favor of the
government
32.In commodatum, one of the following is not correct, which one is it?
a. The object maybe fungible
b. The bailor need not be the owner
c. The bailor pays for the ordinary expenses
d. The parties may stipulate that bailee can also be use the fruit of the thing
loaned
33.If a partner is insolvent, the first order of preference in the distribution of his assets is
a. Partnership creditors
b. Partners contribution in the partnership
c. Separate creditors of such partner
d. Pro-rata between his separate creditors and partnership creditors
34.The following pertain to pledge, except
a. Delivery of the object to the creditor is necessary
b. If the property is sold, the debtor is not entitled to the excess
c. Registration is necessary for its validity
d. If the property is sold, the creditors is not entitled to recover the deficiency
35.A person cannot be admitted into the partnership without the consent of
a. All the partners
b. Majority of the partners
c. 2/3 of the partners
d. Partners representing the controlling interest
36.Partners A, B and C met a tragic accident. A and B instantly died on the spot, while C
was brought to the hospital but died a few hours later. If there is no stipulation as to
who will be in charge, who may wind-up partnership affairs?
a. The legal representative of A
b. The legal representative of B
c. The legal representative of C
d. The court will appoint a representative who will wind up the affairs
37.The executive committee shall act by
a. Majority vote
b. 2/3 vote
c. At least 3 members
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d. Unanimous vote
38.S sold his piano to B for P200,000, payable in installment. A chattel mortgage was
constituted on the piano. B defaulted in two installment payments. S demanded
payment of the unpaid obligation amounting to P120,000 and a writ of attachment
was issued and the piano was sold for P100,000. Can A still recover the deficiency?
a. Yes, even without stipulation
b. Yes, only if stipulated that in case of foreclosure the buyer will pay any
deficiency
c. No, even if stipulated
d. No, unless there is stipulation
39.A, B and C are partners who contributed P30,000, P15,000 and industry, respectively.
After payment of all liabilities and expenses only P18,000 remain as partnership
assets. A will get
a. P9,000
b. P12,000
c. P6,000
d. P5,000
40.Using the above statement, but the assets amount to P60,000, B will get
a. P15,000
b. P20,000
c. P18,750
d. P22,500
41.A, a VAT registered person had the following data for April 2009 (vat not included):
a. Export sale of feeds for animals
i.
For human consumption
1,500,000
ii.
For face horses and fighting cocks
500,000
b. Domestic sale of feeds for animals
i.
For human consumption
750,000
ii.
For race horses and fighting cocks
250,000
c. Input tax which cannot be directly attributed to
any of the above sales
100,000
The output tax of April is
a. P30,000

b. P90,000

c. P60,000

42.Using the above data, the vat still due (excess input tax) is
a. (P45,000)
b. (P20,000)
c. (P70,000)

d. P120,000
d. P5,000

43.Which of the following is subject to scheduler donors tax rate?

a. A wedding gift given to the granddaughter of the brother of donors
grandmother
b. A wedding gift given two years after the wedding celebration to the great
grandson of the donors granddaughter
c. Anniversary gift given to the brother of the donors great grandfather
d. A birthday gift given to his mother-in-law
44.A sold a personal property held as capital asset he acquired 8 years ago with an
acquisition cost of P150,000 for P270,000. The payment shall be: cash down
payment of P40,000 and additional P10,000 at the end of the year of sale. The
property sold had been mortgaged for P160,000 which is assumed by the buyer. The
buyer issued a promissory note for the balance which is to be paid in 2 equal annual
payments following the year of sale. The taxable profit for the first year is
a. P120,000
b. P60,000
c. P30,000
d. P15,000

45.The gross estate of A includes P80,000 receivable which is duly notarized from the
debtor B whose records show:
a. Assets
P 100,000
b. Indebtedness to:
i.
Government by way of taxes
40,000
ii.
A
80,000
iii.
Other creditors
20,000
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The deductible claims against insolvent person is
a. P80,000

b. P29,285

c. P48,000

d. P32,000

46.A, a resident citizen died on April 18, 2009. Included in his estate is a property he
inherited from his father who purchased the property 2 before his father died on
March 30, 2005. The vanishing deduction rate is
a. 60%
b. 40%
c. 20%
d. 0%
47.Donors tax is a (an)
a. Progressive tax
b. Proportional tax
c. Property tax
d. Excise tax
48.A files his income tax return for 2006 and paid the tax due thereon of P100,000 on
April 15, 2007. When audited, it was discovered that she erroneously computed the
tax due. The correct amount of the tax due in a letter of demand and assessment
notice requiring her to pay on or before June 30, 2008 is P120,000. Ignoring
compromise penalty, the amount due on June 30, 2008 is
a. P29,833
b. P24,833
c. P155,000
d. P48,986
49.Proceeds of life insurance where the beneficiary of the decedent is not his estate,
executor or administrator is
a. Part of gross income if the beneficiary is revocable
b. Part of gross income regardless whether the beneficiary is revocable or
irrevocable
c. Not part of gross estate if the beneficiary is revocable
d. Part of gross estate regardless whether the beneficiary is revocable or
irrevocable
50.A, a VAT registered taxpayer made the following acquisition of capital goods from VAT
registered suppliers (net of vat) during the quarter;
Date
Cost
Estimated Life
July

1,500,000

8 years

10

500,000

2 years

August

September

400,000

3 years

20

500,000

4 years

10

500,000

4 years

15

600,000

6 years

The July 2 acquisition was retired in September.

The input tax for July is
a. P4,275

b. P5,500

c. P63,000

d. P240,000

51.Using the above data, the input tax for August is

a. P2,583
b. P8,083
c. P108,000

d. P113,500

52.Using the data in number 50, the input tax for September is
a. P2,450
b. P132,000
c. P178,950

d. P231,450

53.A sold his residential land, a capital asset for P 5,000,000. The fair market value of
the land is P6,000,000 while the zonal value is P5,500,000. A acquired the land 15
years ago at a cost of P2,000,000. A utilized the proceeds to buy a new house and lot
or P8,000,000. The capital gains tax is
a. P0
b. P300,000
c. P330,000
d. P360,000
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54.Using the above data, assume instead that A utilized only P3,000,000 to acquire his
new house and lot, the capital gains tax is
a. P120,000
b. P144,000
c. P300,000
d. P360,000
55.Which of the following is subject to vat?
a. Sale of passenger or cargo vessels and aircraft for domestic or international
transport operations
b. Sale of agricultural and marine food products in their original state
c. Sales by agricultural cooperatives duly registered with the Cooperative
Development Authority
d. Sale of fuel, goods and supplies by persons engaged in international shipping
or air transport operations
56.The following are exempt from vat except
a. Services subject to percentage tax
b. Leases of residential units with a monthly rental not exceeding P10,000
c. Exports sales
d. Services of banks and other non-banks financial intermediaries
57.As income tax liability for 2007 was P75,000. She filed the return and paid the total
amount due but not with the proper internal revenue district office on July 15, 2008.
The amount payable (ignoring compromise penalty)
a. P97,500
b. P112,500
c. P116,250
d. P135,000
58.The following were taken from the income statement of A Corporation for the taxable
year 2008:
Gross profit from sales

P1,000,00
0

Less: Business connected expenses

Provision for bad debts

P630,000
90,000

Net income before income tax

Additional information:
a. Accounts written off during the year and charge to allowance
for bad debts
b. Recoveries on account receivable previously written off in
2007
i.
Allowed by BIR as deductions
ii.
Disallowed by BIR as
deduction
c. Refund of taxes paid in 2007:
i.
Allowed by BIR as deduction
ii.
Disallowed by BIR as deduction
The taxable income is
a. P310,000
b. P410,000

c. P390,000

720,00
0
P
280,000
P
60,000

30,000
40,000

50,000
60,000

d. P340,000

59.DODC Airlines, an international air carrier showed the following gross receipts:
Point of Origin
Philippines

Destination
China
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Gross Receipts
P 2,000,000

04/18/09
Philippines
Singapore

Singapore
Japan

1,600,000
3,000,000

Twenty-five percent of the shipment from the Philippines to Singapore were later
shipped from Singapore to Japan. The percentage tax due is
a. P198,000

b. P186,000

c. P108,000

d. P96,000

60.DODC Broadcasting, a non-vat holder of a franchise to operate a radio and television

network reported the following gross receipts (net of any tax):
Year 2007
P 9,000,000
2008
12,000,000
The business tax liability
2007

2008

a. P 270,000
b. 1,080,000
c.
270,000
d. 1,080,000

P360,000
1,440,000
1,440,000
360,000

61.For the current taxable quarter, DODC Telecommunication Corporation shows the
following data on gross receipts (net of any tax):
Gross receipts:
From domestic calls and messages
1,000,000
From overseas call and messages
2,000,000
The total business tax is
a. P 300,000

b. P360,000

c. P200,000

d. P320,000

62.Tax credit for foreign tax paid is allowed on

a. Income tax paid by a non-resident citizen
b. Estate tax paid by a resident alien
c. Income tax paid by a non-resident alien
d. Donors tax paid by a non-resident alien
63.M captured the world welterweight boxing title by defeating O. By virtue of this honor
he bought to the country, he was given a brand new car as a price by a car
manufacturer.
Statement 1 The prize received by M is exempt from tax
Statement 2 The car manufacturer can deduct in full the gift for income tax
purposes
a. True, true
b. True, false
c. False, false
d. False, true

64.A, presented the following data regarding the items of income he earned during
taxable year 2009:
a. Rental income (gross)
i. From an apartment unit in USA
ii. From a parcel of land in Makati
b. Royalties from book:

P 240,000
180,000
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i. Published in the Philippines
30,000
ii. Published in USA
20,000
c. Interest income earned on notes receivable
i. From a debtor who resides in USA
15,000
ii. From a debtor who resides in Manila
25,000
d. Net profit from sales, merchandising business
i. From Philippine outlet
300,000
ii. From USA outlet
200,000
e. Dividend income from two domestic corporations. The gross
income from the Philippines for the past 3 years
i. 60% of its world income
60,000
ii. 85% of its world income
80,000
f. Dividend income from two resident corporations. The gross
income from the Philippines for the past 3 years was equivalent
to:
i. 40% of its world income
40,000
ii. 60% of its world income
20,000
g. Prizes received from Supermarket raffle:
i. From the Philippines;
1) ABC Supermarket
8,000
2) DEF Superstore
12,000
ii. From USA
1) UVW Supermarket
6,000
2) XYZ Supersavers
14,000
h. Prizes and winnings from lotto
i. Philippine lotto
200,000
ii. USA lotto
100,000
The total income from sources within the Philippines is
a. P903,000
b. P703,000
c. P895,000
d. P907,000
65.Using the above data, the total income from sources outside the Philippines is
a. P635,000
b. P535,000
c. P643,000
d. P629,000
66.Using the data in number 64, assume instead that A is a resident citizen, single, his
net taxable income subject to graduated rates is
a. P1,118,000
b. P1,018,000
c. P992,000
d. P938,000
67.Using data in number 64, assume instead that A is a non-resident citizen, single, his
taxable income subject to graduated rates is
a. P495,000
b. P475,000
c. P470,000
d. P487,000
68.ABC Corporation did not file its annual income tax return for the calendar year 2007
on its due date, that is April 15, 2008. On may 15, 2008, the corporation advised the
BIR that its income tax due for the said year amounts to P1,000,000 but however,
due to its adverse financial condition at the moment, it will be unable to pay the
entire amount, inclusive of the delinquency penalties. Hence, on May 15, 2008, it
made a partial payment of P400,000. The total amount due as of May 15, 2008 is
(ignoring compromise penalty)
a. P1,266,667
b. P1,160,000
c. P760,000
d. P1,516,667
69.Using the above statement, assuming that the BIRD demanded payment of the
unpaid balance of its tax obligation payable by June 15, 2008, the amount due on
June 15, 2008 is (ignoring compromise penalty)
a. P881,111
b. P1,027,778
c. P772,667
d. P926,667
70.Using the number 69 facts, if the corporation fails to pay the tax due by June 15,
2008, how much will the corporation pay on July 15, 2008
a. P895,796
b. P1,055,908
c. P785,548
d. P978,711

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71.When no notice for audit or investigation of tax return, statement or declaration has
been actually served upon the taxpayer, the tax return maybe modified, changed or
amended by the taxpayer, from the date of such filing within
a. 30 days
b.180 days
c. 3 years
d. 5 years
72.Tax paid or incurred within the taxable year in connection with the taxpayers
profession, trade or business which may be allowed as deduction
a. Estate and donors tax
b. Income tax imposed by the Philippine government
c. Income tax imposed by authority of a foreign country
d. Taxes assessed against local benefits of a kind tending to increase the value of
the property assessed.
73.XYZ Corporation, a domestic corporation had the following data during the calendar
year 2009
Gross income
Business connected expenses
Dividends from:
a) Domestic corporation
b) Foreign corporation, 90% of the gross income was
derived from the Philippines
c) Foreign corporation, 60% of the gross income was
derived from the Philippines
d) Foreign corporation, 30% of the gross income was
derived from the Philippines
The taxable income is
a. P920,000
b. P820,000

c. P748,000

P
1,000,000
400,000
100,000
100,000
80,000
40,000

d. P750,000

74.On January 1, 2000, A leased his lot with a building thereon to B for a period of 20
years. The contracting parties agreed that the lessee will pay the following:
a. Annual rent of P120,000
b. Fire insurance on the building at P10,000 per year
c. Real property tax on the building at P20,000 per year
The lease contract further provides that any improvements introduced thereon by
the lessee should belong to the lessor at the end of the lease. The lessee introduced
improvements at a cost of P8,000,000 with an estimated useful life of 20 years from
completion. The improvements were completed on December 31, 2002. The lessor
reports income on the improvements each year using the spread out method. The
income to be reported by the lessor in 2003 is
a. P190,588

b. P194,444

c. P210,000

d. P220,588

75.The income to be reported by the lessor in 2003, assuming that the improvements
were completed on April 1, 2003
a. P77,612
b. P58,209
c. P208,209
d. P227,612
76.Statement 1 Starting July 1, 2008, the optional standard deduction is 40% of gross
income
Statement 2 If optional standard deduction is chosen, it is irrevocable for 3 years
a. True, true
b. True, false
c. False, true
d. False, false

77.A, a rank and file employee received the following benefits in 2008:
11

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a. Uniform allowance
b. Rice subsidy
c. Laundry allowance
d. Mid-year bonus
e. Christmas gift
f. 13th month pay
The taxable benefit is
a. P7,200

P 6,000
21,600
4,200
12,000
6,000
12,000
b. P1,200

c. P14,200

d. P0

78.The 2007 records of a trust established by employer A for the benefit of the
employees show:
a. Contribution to the trust
i.
By employer A
ii.
By the employee
b. Income from the trust
The taxable income of the trust is
a. P300,000
b. P280,000

P
1,800,000
900,000
300,000
c. P250,000

d. P0

79.As regards individuals, which of the following is not correct?

a. Income tax returns should be filed on or before April 15 of the following year
b. Estate tax returns should be filed within 6 months from the date of death of the
decedent
c. Donors tax returns should be filed within 30 days after the date the gift was
made
d. VAT returns should be filed within 25 days after the end of each month
80.Which of the following is not considered as transaction deemed sale?
a. Transfer, use or consumption not in the ordinary course of business of goods or
properties originally intended for sale of for use in the course of business
b. Distribution or transfer to shareholders or investors as share in the profits of
the vat-registered person or to creditors in payment of debt
c. Consignment of goods actual sale is not made within 60 days following the
date such goods were consigned
d. Retirement from or cessation of business, with respect to capital goods
existing as of such retirement or cessation.

12

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ANSWERS: (April 18, 2009)

1. D
2. C
3. D
4. D
5. C
6. A
7. B
8. C
9. D
10.C
11.B
12.A
13.D
14.C
15.D
16.B
17.B
18.B
19.A
20.C

21.A
22.C
23.C
24.A
25.B
26.C
27.B
28.B
29.C
30.C
31.D
32._
33.C
34.C
35.A
36.C
37.A
38.A
39.B
40.C

41.A
42.A
43.B
44.C
45.D
46.C
47.D
48.B
49.C
50.B
51.D
52.C
53.D
54.D
55.D
56.C
57.C
58.C
59.D
60.A

81.

13

61.D
62.B
63.C
64.D
65.C
66.A
67.B
68.A
69.A
70.A
71.C
72.C
73.B
74.D
75.C
76.D
77.B
78.D
79.D
80.D

82.