BAC 103 Quiz 2

Tax is paid by...

• Individuals only

• Businesses only

• Individuals and businesses

• Individuals, businesses, and the government

Self-assessment system means that

• Taxpayers determine which taxes they will pay.

• Taxpayers must compute their own taxes before payment.

• Taxpayers are responsible for maintaining the necessary records from which their taxable incomes can be determined.

• Taxpayers cannot assess other people's taxes.

The calendar year is

• from January 1 to December 31

• from April 1 to March 31

• the same as the fiscal year

• any 12 month period

Individuals, estates or trusts and general professional partnerships are required to compute their taxable income on the basis of

• the calendar year or fiscal year

• the calendar year only

• the fiscal year only

• neither of the two

A corporation may employ this taxation purposes

• the calendar year or fiscal year

• the calendar year only

• the fiscal year only

• neither of the two

In this method, a tax payer reports income and deductions in the year that they are actually paid or received.

• accrual method

• cash basis method

• hybrid method

• crop year basis

This  is a method applicable only to farmers engaged in the production of crops which take more than a year from the time of planting to the process of gathering and disposal.

• accrual method

• cash basis method

• hybrid method

• crop year basis

Which is FALSE about income tax?

• it is a tax on income,  profits and the like, realized in one taxable year. 

• It can be applied on the capital of the business.

• It is imposed at progressive or gradual rates.

•   It is generally regarded as an excise (privilege) tax, levied upon the right of a person to receive income or profits.

All of these are taxed as individuals EXCEPT

• Pure compensation earners

• Professional Partners

• Sole Proprietors

• General Partners

This refers to all income except exempt income and income subject to  final income tax.

• Gross Income

• Net Income

• Taxable Income

• Actual Income