C4-IT

Both active income and passive income do not require direct participation of the taxpayer in earning the income.

• True

• False

There are three types of gross income for taxation purposes.

• True

• False

The three tax schemes are mutually inclusive in coverage.

• True

• False

Regular income tax generally covers active income and capital gains.

• True

• False

Final tax generally covers passive income.

• True

• False

Capital gains arise from the sale, exchange, and other disposition of any assets.

• True

• False

An ordinary asset is defined to include all other assets other than capital assets.

• True

• False

The technique used to measure income is referred to as an accounting method.The length of time over which income is reported is referred to as an accounting period.

• True

• False

Regular accounting periods are calendar and fiscal.

• True

• False

Individuals file their income tax returns on or before April 15 of the folloving calendar year.

• True

• False