Name:______________________________________________ SCORE:____________

Year and Section: ____________ Date: ______________

Subject: Transfer and Business Taxes

Pre-Final Examination
Instructor: Atty. Rommel John G. Edang

Instruction: Read the questions carefully and encircle the letter of your answer.
This test questionnaire is for free (paid by Atty. Edang) so return to the proctor as soon as you are done.

1. If you are a citizen and a resident, your properties, wherever located is taxable. This statement is:
a) Correct b) Incorrect c) Illogical d) Without bases
2. It is important to know the citizenship as well as the residence of the person to determine if his/her property
is taxable. This statement is:
a) True b) False
3. An executor is a person who is named by the court to manage the property of the decedent until it is
transferred to the heirs. This statement is:
a) True b) False
4. The legislative branch is composed of only 3 houses. This statement is
a) True b) False
5. Which of the following is not a branch of the government?
a) Congress b) Judiciary c) President d) Executive
6. The Supreme Court, Court of Appeals and Regional Trial Courts are part of the Executive Branch. This
statement is
a) Wrong b) Right
7. For a medical expense to be validly deducted from the gross estate, it is enough that the expense is certified
to be true by the attending physician in lieu of receipts. This statement is:
a) Wrong b) Right c) Illogical d) Without basis
8. A, a full-time teacher and works as part-time tutor. She paid income tax as a teacher, she now refuses to pay
income tax from her income as a tutor arguing that it will amount to double taxation. Is A correct?
a) No b) Yes c) Maybe d) It depends
9. A transfer for insufficient consideration is:
a) Illegal b) Legal c) Taxable d) Not taxable
10. For a medical expense to be deducted from the gross estate, it must be incurred within ____ years.
a) 2 years b) 5 years c) 1 year d) Less than 1 year
11. The secondary purpose of Taxation is________:
a) To impose burden b)To fund projects c)To regulate d) To enrich the government
12. It refers to the person to whom the property of the dead person is given to.
a) Successor b) Court c) Stranger d) Executor
13. For a medical expense to be validly deducted form the gross estate, it is enough that the expense is certified
to be true by the attending physician in lieu of receipts. This statement is:
a) Wrong b) Right c) Illogical d) Without basis
14. What agency of the executive branch is responsible for the collection of taxes?
a) BOC b) BIR c) DOF d) DOJ
15. If the answer to one of these two questions * Are you a Citizen and *Are you a Resident is NO, the person is?
a) Taxable b) Not Taxable
b) Taxable only for properties in the Philippines d) None of the above
16. Which of the following branch of government is responsible for the creation of laws?
a) Judiciary b) Executive c) Legislative d)Constitutional Commission
17. A RIGHT is the basics of human existence as dictated by the government. This statement is:
a) True b) False
18. A decedent is a person who died. This statement is:
a) True b) False
19. It refers to the bulk of the property left behind by the dead person.
a) Heir b) Testator c) Executor d) Estate
20. Who is a testator?
a) A person who died without a will b) A person who died
c) A person who died with a will d) A person who is about to die and made a will
21. For the Vanishing Deduction to apply, how many deaths should take place?
a) 1 b) 2 c) 3 d) 4
22. How many family home can a person use a deduction from gross estate?
a) At least 1 b) More than 1 c) Only 1 d) None of the above
23. A’s house is valued at 5 million pesos, how much can she claim as deduction from gross estate on account of
family home?
a) I million b) 5 million c) Half the price of the house due to depreciation d) The court will determine
24. Which of the following branch of government is responsible for the implementation of laws?
a) Executive b) Legislative c) Judiciary d) Constitutional commission
25. If the answer to one of these two questions * Are you a Citizen and *Are you a Resident is NO, the person is?
a) Taxable c) Not Taxable
b) Taxable only for properties in the Philippines d) None of the above
26. Privilege are rights that you can live without. This statement is :
a) False b) True
27. One of the requirements in the exercise of eminent domain is_____:
a) The taking must be for another private purpose. b) It must be with the approval of the
president.
c) The taking must be with payment of just compensation .d) The land can be a public land.

28. Intestate succession is that which results from the operation of law. This statement is :
a. Correct b) Not correct c) Slightly correct d) Illogical
29. Are revocable transfers taxable?
a. Yes b) No c) Maybe d) I’d rather not say
30. It is the power to monitor people for the general welfare
a. Power of surveillance b) Eminent domain c) Taxation d) Police power
31. Testamentary succession results from a designation of heirs made in the last will and testament. This
statement is :
a. True b) False
32. Which of the following is an example of a Transfer Tax?
a. Sin Taxb) Estate Tax c) VAT d) CGT

33. Donation inter vivos takes effect during the life time of the person. This statement is?
a. True b) False
33. Situs of taxation means?
a) System of Taxation b) Period of Taxation c) Place of Taxation d) Subject of Taxation
34. A holographic will is?
a) Done through a hologram b) Done through video-recording
c) Written entirely by the testator himself/herself d) Through tele-conferencing with a lawyer
35. For vanishing deduction to apply, at least one of the properties must be located in the Philippines. This
statement is:
a) True b) False
36. Suppose that A paid her income tax and then paid Value Added Tax for the purchase of her jeans. Can she
claim double taxation?
a) Yes b) No c) Maybe d) It depends
37. The amount for standard deduction is:
a) 1.5 million b) 1 million c) .5 million d) At least 1 million
38. In succession, only properties are being transmitted. This statement is:
a) False b) True
39. Which of the following is not correct regarding funeral expense?
a) It can only be counted if the expense was incurred within one year from the time of death.
b) The maximum limit is not more than Php 200,000.00
c) It may include vigil expenses
d) It may be equal to 5% of the gross estate
40. Donation Mortis Causa also takes effect even when a person is alive but made a donation in contemplation of
death. This statement is?
a) False b) True
41. Which of the following branch of government is responsible for the interpretation of laws?
a) Executive b) Legislative c) Judiciary d)Constitutional commission
42. A RIGHT is the basics of human existence as dictated by the government. This statement is:
a) True b) False
43. Can you deduct claims against insolvent person from the gross estate?
a) Yes b) No c) Maybe d) I’d rather not say
44. A, a full-time teacher and works as part-time tutor. She paid income tax as a teacher, she now refuses to
pay income tax from her income as a tutor arguing that it will amount to double taxation. Is A correct?
a) No b) Yes c) Maybe d) It depends
45. The following are things that are transmissible in Succession, except:
a) Real property b)Intangible property c) Tangible property d)Affection
46. Which of the following is not an inherent power of the state:
a) People power b) Police Power c) Eminent Domain d) Taxation
47. How many years from the first death should another death take place for vanishing deduction to apply?
a) After 5 years b) Within 5 years c) After 10 years d) Within 10 years
48. Suppose that A paid the same nature of tax to the national government and the Local Government Unit,
can she claim double taxation?
a) Yes b) No c) Maybe d) It depends
49. Which of the following is not an example of a Business Tax?
a) Documentary Tax c ) Value Added Tax
b) Excise Tax d) Other Percentage Tax
50. It theorizes that the government cannot exist without taxes.
a) Governmental dependence theory c) Lifeblood theory
b) Mutualism theory d) Benefits received theory