EASTER COLLEGE
INCORPORATED
INSTRUCTIONS: Choose the correct answer. Write your answer on
¼ sheet of yellow pad paper. Not following instructions will render 3
points deduction and late submission will incur 5 points deduction on
exam scores.
1. These are income earned with very minimal or even without
active involvement of taxpayer in earning process.
a. Active Income
b. Passive Income
c. Capital Gains Tax
2. During the death of the taxpayer when is the cut off of income
recognition be made?
a. Point of Death
b. Before Death
c. 30 days after Death
3. How many days of dissolving corporations must file their
return?
a. 20 days
b. 15 days
c. 30 days
4. This is an accounting period that ends on December 31?
a. Calendar Year
b. Fiscal Year
c. Semi-annually
5. This is an accounting period that ends on any day other than
December 31?
a. Calendar year
b. Fiscal Year
c. Semi-annually
Author: Shafni G.
Website: https://www.eastercollege.ph
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EASTER COLLEGE
INCORPORATED
6. All are examples of Passive Income, except?
a. Interest Income
b. Royalties
c. Compensation Income
7. All are examples of Active income, except?
a. Compensation Income
b. Professional Income
c. None of the above
8. For individual, what month and day is the deadline of filing
INCOME TAX RETURN?
a. April 15
b. April 16
c. April 14
9. This refers to length of time over which income is measured and
reported?
a. Assessment period
b. Accounting period
c. Accumulated period
10. This is a tax imposed on gain realized on sale, exchange
and other disposition of certain capital assets.
a. Capital Gains Tax
b. Income Tax
c. Final Tax
11. The tax concept of income is simply referred to as ______?
a. Gross Income
b. Income
c. Diluted capital
Author: Shafni G.
Website: https://www.eastercollege.ph
Dulnuan
EASTER COLLEGE
INCORPORATED
12. All are elements of income, except?
a. It is a return on capital that increases net worth
b. It is a realized benefit
c. It is exempted by law, contract, or treaty
13. Any form of advantage derived by the taxpayer?
a. Concept
b. Benefit
c. Sale
14. This is a transfer of property upon death.
a. Donation
b. Sale
c. Succession
15. These transactions are partly gratuitous and partly
onerous.
a. Complex
b. Donation
c. Succession
16. Every person, natural or juridical, is an ______.
a. Entity
b. Corporation
c. None of these
17. Under individual income taxpayers, when is the time of
adoption of the constitution?
a. February 1, 1987
b. February 2, 1978
c. February 2, 1987
Author: Shafni G.
Website: https://www.eastercollege.ph
Dulnuan
EASTER COLLEGE
INCORPORATED
18. A citizen of the Philippines who works and derives income
abroad and whose employment thereat requires him to be
physically present abroad most of the time during taxable year.
a. Resident Citizen
b. Non-Resident Citizen
c. Alien
19. A Filipino citizen residing in the Philippines.
a. Resident Citizen
b. Non-Resident Citizen
c. Alien
20. An alien who stayed in the Philippines for an aggregate
period of more than 180 days.
a. Non Resident Alien engaged in Business
b. Resident Alien
c. Non Resident Alien not engaged in Business
21. Citizens staying abroad for a period of at least 183 days are
considered ____________.
a. Non Resident Alien
b. Non Resident Citizen
c. Non Resident Alien engaged in Business
22. These 2 are taxable on all income derived within and
outside the Philippines.
a. Resident Citizen and Resident Corporations
b. Non Resident Citizen and Resident Corporations
c. Resident Citizen and Foreign Corporations
23. Choose the type of taxpayer whose income is taxable on
income derived within the Philippines only.
a. Resident Citizen
b. Resident Corporations
Author: Shafni G.
Website: https://www.eastercollege.ph
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EASTER COLLEGE
INCORPORATED
c. Resident Alien
24. Other term for situs.
a. Place
b. Rent
c. Property
25. Domestic securities are presumed earned ______ the
Philippines.
a. Within
b. Without
c. Both
26. The situs of taxation for Interest income is________.
a. Debtors Residence
b. Location of Property
c. Place where the service is rendered
27. The situs of taxation for Royalties is ______________.
a. Debtors Residence
b. Where the intangible is employed
c. Place where the service is rendered
28. The situs of taxation for Rent income is ______________.
a. Debtors Residence
b. Location of Property
c. Place where the service is rendered
29. The situs of taxation for Service income is ______________.
a. Debtors Residence
b. Location of Property
c. Place where the service is rendered
Author: Shafni G.
Website: https://www.eastercollege.ph
Dulnuan
EASTER COLLEGE
INCORPORATED
30. In the rule of predominance test how many percent should
be earned in the Philippines?
a. At least 50%
b. Less than 50%
c. At least 25%
31. Mr. Isla Lipana is a Filipino citizen residing in the
Philippines.
a. Resident Citizen
b. Non Resident Citizen
c. Resident Alien
32. Dr. Garcia is an ophthalmologist from US. He was
contracted by BGH to render a specific surgery in the eyes of Mr.
Reyes here in the Philippines. Dr Garcia left the country after 150
days.
a. Non Resident Alien Not Engaged in business
b. Resident Alien
c. Non Resident Alien Engaged in business
33. Mr Sycip Gorres Velayo is a Mexican citizen, he came to
Philippines with an immigration visa, he bought a house and a
car, his intention is to stay in the Philippines for 5 yrs to
complete his study in medicine.
a. Resident Alien
b. Non Resident Alien
c. Resident Citizen
34. Miss Yan Yu is a Filipino Citizen, she is conducting
business abroad. Most of the time she is not present in the
Philippines during taxable year.
a. Resident Citizen
b. Non Resident Citizen
c. Resident Alien
Author: Shafni G.
Website: https://www.eastercollege.ph
Dulnuan
EASTER COLLEGE
INCORPORATED
35. Mr Abrenica is half Japanese, half Chinese he came in the
Philippines to trade his linens in Tondo Manila, after 7 months
he left the country and went back to Japan.
a. Non Resident Alien Not Engaged in business
b. Resident Alien
c. Non Resident Alien Engaged in business
36. This is a mark-up when we deduct selling price over cost?
a. Return on Capital
b. Return of Capital
c. Total Return
37. Any inflow of wealth to the taxpayer from whatever
source, legal or illegal, that increases net worth.
a. Gross income
b. Specific Income
c. Source of Income
38. Are income derived from illegal activities taxable?
a. Yes
b. No
c. Maybe
39. If an individual tax payer late in the submission of his/her
income tax return, what happens?
a. Will be charged for surcharge, interest and compromise
b. Will be charged for interest only
c. Will be charged for compromise only
40. When paid for, which of the following items may involve a
return on capital.
Author: Shafni G.
Website: https://www.eastercollege.ph
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EASTER COLLEGE
INCORPORATED
a. House and lot
b. Life
c. Dignity
d. Health
INSTRUCTIONS: For items 41 to 50 write T if the statement
is true and write F is the statement is False.
41. Minimum wage is exempted from income taxation by
virtue of legal exemption.
42. Gain on sale of Prohibited drugs is exempt from income
taxation.
43. Income is subject to taxation because it is the most
prevalent source of taxpayers’ wealth.
44. A Canadian who is staying in the Philippines for more than
1 year is a resident alien.
45. An ordinary asset is defined to include all other assets
other than capital assets and is used for daily operations of
business.
46. Active income requires taxpayer’s direct participation in
the earning process.
47. Passive income and active income requires taxpayer’s
direct participation in the earning process.
48. Passive income does not require taxpayer’s direct
participation in the earning process.
49. Capital gains tax arises from sale of ordinary assets.
50. Capital gains tax arises from sale ONLY of capital assets.
Author: Shafni G.
Website: https://www.eastercollege.ph
Dulnuan
EASTER COLLEGE
INCORPORATED
Author: Shafni G.
Website: https://www.eastercollege.ph
Dulnuan
