IT - Ch7 Theory Quiz on Introduction to

Regular Income Tax (AE 201 - Income

Taxation)
Points:
16/20
1.The deadline of the annual income tax return of corporations using the calendar year is
similar to the deadline fixed for individual taxpayers.Required to answer. Single choice.
(0/2 Points)
True
False
2.Every individual taxpayer is exempt from income tax and compensation up to P 250,000
annually but the same exemption does not apply to business income.Required to answer.
Single choice.
(0/2 Points)
True
False
3.Only corporations may incur deductions against gross income.Required to answer. Single
choice.
(2/2 Points)
True
False
4.The deadline of filing the corporate quarterly income tax return is the same with the
deadline of the quarterly income tax return of individuals.Required to answer. Single choice.
(2/2 Points)
True
False
5.The gross income from business is measured as sales or gross receipts less cost of sales or
cost of services.Required to answer. Single choice.
(2/2 Points)
True
False
6.Business expenses can be deducted against all types of gross income subject to regular
tax.Required to answer. Single choice.
(2/2 Points)
 True
False
7.No deduction shall be allowed against taxable income.Required to answer. Single choice.
(2/2 Points)
True
False
8.The taxable compensation income is computed as gross compensation less the non-
taxable compensation income.Required to answer. Single choice.
(2/2 Points)
True
False
9.The tax due of individuals is determined by means of a schedules of tax rates.Required to
answer. Single choice.
(2/2 Points)
True
False
10.The tax due of corporations is determined by multiplying their gross income by
30%.Required to answer. Single choice.
(2/2 Points)
True
False
IT - Ch9 Regular Income Tax: Inclusion in
Gross Income (AE 201 - Income Taxation)
Points:
16/20
1.Corporate winnings are exclusions in gross income; hence, they are exempt from income
tax.Required to answer. Single choice.
(1/1 Point)
True
False
2.All items of passive income earned abroad are subject to regular tax toRequired to answer.
Single choice.
(1/1 Point)
a domestic corporation only
a resident citizens and domestic corporation
a resident citizen only
all taxpayers
3.Items of income which are included in gross income subject to final tax are excluded in
gross income subject to regular income tax.Required to answer. Single choice.
(1/1 Point)
True
False
4.Which item of gross income is not subject to regular tax?Required to answer. Single
choice.
(1/1 Point)
gain on sale of domestic stocks by a security dealer
interest income from foreign bank deposits
capital gain on sale of patent
capital gain on the sale of bonds with more than 5 years maturity
5.Imputed interest income is an item of gross income subject to regular income
tax.Required to answer. Single choice.
(1/1 Point)
True
6.Which is exempt from re False
gular tax?Required to answer. Single choice.
(1/1 Point)
income of qualified pension plans
income from financing or leasing
income from construction
income from merchandising or trading
7.Pensions or retirement benefits are inclusions in gross income subject to regular income
tax if the employee is terminated due to any cause within his control.Required to answer.
Single choice.
(0/1 Point)
True
False
8.Corporate prizes are exclusions of gross income subject to final tax but are inclusions in
gross income subject to regular income tax.Required to answer. Single choice.
(0/1 Point)
True
False
9.Advanced rentals are income in the year received.Required to answer. Single choice.
(1/1 Point)
True
False
10.Which is an income exempt from income taxRequired to answer. Single choice.
(1/1 Point)
Income of a general professional partnership
Foreign dividends
Taxes collected by the government
Income of government-owned and controlled corporations
11.Stock dividends are never subject to income tax.Required to answer. Single choice.
(0/1 Point)
True
False
12.Which of the following will not be reported in gross income?Required to answer. Single
choice.
(1/1 Point)
Royalties from foreign sources
Receipt of inheritance
Share in the net income of a foreign partnership
Income distribution from a taxable estate
13.Which is not a reportable type of gross income?Required to answer. Single choice.
(1/1 Point)
Rent income
Dividends from a foreign corporation
Capital gains from the sale of domestic stocks through the PSE
Passive royalties
14.Which of the following is included in gross income subject to regular tax?Required to
answer. Single choice.
(1/1 Point)
Sub-contract income from petroleum service contractors
Share in the net income of a taxable co-ownership
Interest income from government securities
Farming income
15.Prizes in athletic competitions sanctioned by the Philippine government are exclusions in
gross income subject to final tax, but are inclusions in gross income subject to regular
income tax.Required to answer. Single choice.
(1/1 Point)
True
False
16.All income earned abroad that would otherwise be subject to final taxes if earned within
the Philippines shall be subject to progressive tax of aRequired to answer. Single choice.
(0/1 Point)
All taxpayers
Domestic Corporation
Resident Alien
Resident Citizen
17.Which is not part of compensation income subject to regular tax?Required to answer.
Single choice.
(1/1 Point)
Portion of salary used to pay salary loans
Director's fees
Bonuses and fixed allowances
Portion of salary contributed to SSS
18.Stock splits are never subject to income tax.Required to answer. Single choice.
(1/1 Point)
True
False
19.Real property tax and insurance on the property if assumed by the lessee constitute
income to the lessor.Required to answer. Single choice.
(1/1 Point)
True
False
20.All of these are subject to regular income tax, exceptRequired to answer. Single choice.
(1/1 Point)
Professional fees
Capital gain from the sale of real property located in the Philippines
Business income
Wages and commissions