DO NOT REPRODUCE EVEN SA IMONG MANGHOD OR SA FRIENDS OR SA IMONG LOVER NA
LOWER YEAR.
1. A purchase is a form of consumption. T
Consumption tax is broader than business tax. T
Consumption tax is entirely based upon the consumer’s ability to pay. F
Exporters pay consumption tax to the government. F
The following statements are true, except
a. I, III
b. II, III
c. II, IV
d. I, II
e. I, IV
f. III, IV
2. A business wants to make P15,000 profit from the sale of an inventory costing P40,000. The
business is non-VAT. At what amount shall the business invoice the sale? 55,556 (15+40/0.99)
3. A VAT-registered recorded the following sales and purchases at its billed prices: Sales
P600,000; Purchases P450,000. How much is the output VAT? 64,285.714 or 64,286
(600×12/112)
4. A VAT-registered recorded the following sales and purchases at its billed prices: Sales
P600,000; Purchases P450,000. How much is the input VAT? 48,214.285 or 48,214
(450×12/112)
5. A VAT-registered recorded the following sales and purchases at its billed prices: Sales
P600,000; Purchases P450,000. How much is the VAT payable? 16,072 or 16,071 (64,286 –
48,214)
6. A VAT-registered recorded the following sales and purchases at its billed prices: Sales
P600,000; Purchases P450,000.Assuming the taxpayer is non-VAT, how much is the business
tax? 3,000 (300,000 x 1%GPT)
7. The NIRC took effect in January 1, 1998 which requires payment of estate taxes within 6
months. The TRAIN law took effect in January 1, 2018 which requires payment of estate taxes
within one year. The estate tax return for a decedent who died December 1, 2017 was to be
filed on May 2018. This estate shall be governed by the
a. NIRC since it is the law effective when the decedent died
b. TRAIN law, the law in effect on the filing of the estate tax return
c. Either laws whichever yields the higher tax for the government
d. Either laws at the discretion of the administrator of the estate
8. The VAT on importation is 12% of the receipts from the sale of services abroad. F
Importation is subject to VAT only. T
The final withholding VAT is 12% of the contract price of purchased services from within the
Philippines. F
The sale of services abroad is exempt. F
The following statements are false, except
a. I only
b. II, III
c. I, II, IV
d. II, III, IV
e. None
f. II only
g. III only
h. IV only
DO NOT REPRODUCE EVEN SA IMONG MANGHOD OR SA FRIENDS OR SA IMONG LOVER NA
LOWER YEAR.
9. Masculino imported a harvester from Indonesia with a total cost of P880,500 inclusive of
customs duties. The importation is subject to 13% customs duties. What is the VAT on
importation? (880,500 x 12%) 105,660
10.Masculino imported a harvester from Indonesia with a total cost of P880,500 inclusive of
customs duties. The importation is subject to 13% customs duties. Assuming that the
importation is made by an agricultural cooperative, how much is the VAT on importation? 0
11. Government agencies and instrumentalities and non-profit organizations or associations are
generally considered as businesses. T
General Professional Partnerships are exempt from tax. F
The sale of capital assets by a business is also considered made in the course of business
being incidental to business operations. F
The husband and wife are taxable as a single person; hence, they pay under an individual
business tax return. This rule is also applicable for the filing of income tax returns. T
All of the following statements are true, except
a. IV
b. II, IV
c. II, III
d. III, IV
e. I
f. II
g. I, II
h. I, IV
i. I, III
12. Ms. Arado, a security broker, effected the sales of several securities of Ms. Arnado. The
following relates to the sale: For sales of stocks, Sales P120,000; Commission is 2% of the
sale. For the sale of bonds, Sales P280,000; Commission P2,800. Compute the amount of
receipts of Ms. Arado subject to business tax. (120,000×2%=2,400+2,800) 5,200
13. Ms. Arado, a security broker, effected the sales of several securities of Ms. Arnado. The
following relates to the sale: For sales of stocks, Sales P120,000; Commission is 2% of the
sale. For the sale of bonds, Sales P280,000; Commission P2,800. Assuming that Ms. Arnado is
an investor in stocks, how much is the output VAT assuming that she is VAT registered? 0
14.Ms. Arado, a security broker, effected the sales of several securities of Ms. Arnado. The
following relates to the sale: For sales of stocks, Sales P120,000; Commission is 2% of the
sale. For the sale of bonds, Sales P280,000; Commission P2,800. The classification of Ms.
Arado’s assets is?
a. Ordinary asset
b. Capital asset
c. Financial asset
d. None of the above
15.Ms. Arado, a security broker, effected the sales of several securities of Ms. Arnado. The
following relates to the sale: For sales of stocks, Sales P120,000; Commission is 2% of the
sale. For the sale of bonds, Sales P280,000; Commission P2,800. The classification of Ms.
Arnado’s assets is?
a. Ordinary asset
b. Capital asset
c. Financial asset
d. None of the above
DO NOT REPRODUCE EVEN SA IMONG MANGHOD OR SA FRIENDS OR SA IMONG LOVER NA
LOWER YEAR.
16. Mr. Arnaiz, employed, received the following from his employer: Proceeds of property
insurance P450,000; Compensation income P250,000; Proceeds from bank loan P100,000.
How much is the VAT assuming he is VAT registered? 0
17. Mr. Arnaiz, employed, received the following from his employer: Proceeds of property
insurance P450,000; Compensation income P250,000; Proceeds from bank loan P100,000.
How much is subject to normal tax? (450+250) 700,000
18. Walan Review School, a non-VAT professional review school, provides preparatory courses to
accountancy graduates who will take the CPA exam. During the month, it collected a total
receipt of P1,100,000. How much is the percentage tax if any? (1,100,000 x 1%)11,000
19.Lacanilao Pastry Shop sells cakes and pastry items to well known hotels around Davao City.
the hotels are allowed credit based on the track record of the hotels. The total amounts
received from sales by the Pastry Shop in the 2nd quarter of 2018 were P224,000, VAT
inclusive. 75% of the sales are normally on account. How much is the VAT on the sales for the
2nd quarter of 2018? 224,000 X 12/112 = 24,000
20.Gerasmia Pastry Shop sells cakes and pastry items to well known hotels around Davao City.
the hotels are allowed credit based on the track record of the hotels. The total amounts
received from sales by the Pastry Shop in the 2nd quarter of 2018 were P224,000, VAT
inclusive. 75% of the sales are normally on account. The account title to best reflect the VAT
is
a. Sales tax payable
b. Value added tax payable
c. Input tax