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Prelim Exam - Taxation

Total questions: 25

Worksheet time: 8mins

Name
Class
Date
1.

(a)   may take effect at the

time of death of the donor or during the lifetime of both

the donor and the donce.

2.

Which theory in taxation states that without taxes, a government

would be paralyzed for lack of power to activate and operate it,

resulting in its destruction?

a)

Power to destroy theory

b)

Sumptuary theory

c)

Lifeblood theory

d)

Symbiotic doctrine

3.

This amount shall be allowed as an additional deduction without need of substantiation.

(a)  

4.

An example of a tax where the concept of progressivity finds

application is the

a)

Amusement tax on boxing exhibitions.

b)

Income tax on individuals.

c)

Excise tax on petroleum products.

d)

Value-added tax on certain articles.

5.

(a)   refers to expenses of testamentary or intestate proceeding for the beneficiary of the estate, incurred in the inventory of taking assets comprising the gross estate.

6.

Which of the following statements relative to donor’s tax is

false?

a)

The spouses shall file separate donor’s tax returns where

the thing donated is common property.

b)

Each parent shall be entitled to the P10,000 exemption on account of marriage of a child.

c)

Exemptions and deductions cannot be claimed where the 30%

tax rate on stranger is applicable.

d)

None of the foregoing.

7.

(a)   The tax code excludes "Intangible" personal property with sirus in the Philippines from the gross estate of a non-resident alien.

8.

Which of the following is not a part of the gross estate?

a)

Conjugal property

b)

Community property

c)

Exclusive property of the decedent

d)

Exclusive property of the surviving spouse

9.

(a)   refers to the right to designate the person or persons who will succeed to the property of the prior decedent, and it may be general or specific.

10.

When the payment of estate tax will cause undue hardship upon the

heirs or the estate which is undergoing judicial settlement before

the court, the BIR Commissioner may grant an extension for a

period not exceeding:

a)

1 year

b)

2 years

c)

3 years

d)

4 years

e)

5 years

11.

(a)   One entirely written dated and signed in the very handwriting of the testator himself and is subject to no required form, and may be made in or out of the Philippines, and be made without a witness.

12.

A subdivision developer sold five (5) residential house and lots,

each to different vendees, for P3,000,000 per lot, or a total

sales of P15,000,000 for the taxable period. These sales shall be classified as:

a)

12% VAT transactions

b)

0% VAT transactions

c)

VAT exempt transactions

d)

None of the foregoing

13.

(a)   those who succeed by force of law to some portion of the inheritance, in an amount predetermined by law, known as the legitime. They succeed whether the testator likes it or not. They cannot be deprived by the testator of their legitime except by disinheritance properly effected.

14.

What institution is required to deduct and withhold a final VAT of

5% on the purchase of goods or services subject to VAT?

a)

National government or any political subdivision thereof

b)

Government-owned or controlled corporations

c)

Both (a) and (b)

d)

Neither (a) nor (b)

15.

Passive income includes income derived from an activity in which

the earner does not have any substantial participation. This type

of income is

a)

Usually subject to a final tax.

b)

Exempt from income taxation.

c)

Taxable only if earned by a citizen.

d)

Included in the income tax return.

16.

(a)   those who succeed together with the primary or secondary

compulsory heirs; e.g. illegitimate children and descendants and surviving

spouse

17.

Who among the following taxpayers may not claim a tax credit or

deduction on income tax paid to foreign countries?

a)

Resident citizens

b)

Domestic corporations

c)

Resident aliens

d)

General Co-Partnerships

18.

is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.



(a)  

19.

Which of the following assets shall be subject to depletion?

a)

Machinery

b)

Land containing ore deposit

c)

Commercial

d)

Goodwill

20.

is an expense of a business (cash outflow) levied by the government that represents a country's main source of income

(a)  

21.

(a)   are immovable properties such as land, building, or any structure or even equipment permanently attached to the land.

22.

Taxation could be exercise by the following except one. Which one?

a)

Judiciary

b)

Legislative

c)

Local government unit

d)

President of the Philippines, in certain cases.

23.

The following are among the constitutional limitation on the power

of taxation. Which one is not?

a)

Due process clause

b)

Non-impairment clause

c)

Equal protection clause

d)

No imprisonment for non-payment of tax

24.

Which of the following is not a direct tax?

a)

Immigration tax

b)

Transfer tax

c)

Income tax

d)

Contractor’s tax (Now VAT)

25.

Who makes revenue regulations?

a)

Secretary of Finance

b)

Commissioner of BIR

c)

Board of Accountancy

d)

House of Reperesentatives