1. If books in digital or electronic format and not devoted to publication of paid advertisements and is compliant with the requirements under R.A. 8047 is sold today, the transaction is:

a. Subject to 12% VAT

b. Subject to 0% VAT

c. VAT-exempt

d. Subject to percentage tax

2. Sale of electricity by Meralco or the Electric Cooperatives based in provinces are: a. Subject to 12% VAT

b. Subject to 0% VAT

c. VAT-exempt

d. Subject to percentage tax

3. Hello Kitty Corp. is a domestic corporation. It sold goods to Disney Corp., an export domestic enterprise. Hello Kitty Corp. billed Disney Corp. Php 1,000,000 upon delivery to Disney Corp. paid Php 1,000,000. Subsequently, Disney Corp. exported the goods to Walt Corp. based in the United States. The sale by Disney Corp. is:

a. Subject to 12% VAT

b. Subject to 0% VAT

c. VAT-exempt

d. Subject to percentage tax

4. HK Corp. is a domestic corporation. It sold goods to Disney Corp., a non-resident foreign corporation based in the United States of America. Disney Corp. however instructed HK Corp. to deliver the goods to Walt Corp., a domestic corporation. Disney Corp. paid $ 50,000 upon delivery. The sale is:

a. Subject to 12% VAT

b. Subject to 0% VAT

c. VAT-exempt

d. Subject to percentage tax

5. HK Corp. is a domestic corporation. It sold goods to DISNEY Corp., a non-resident foreign corporation based in the United States of America. HK Corp. billed DISNEY Corp. $ 50,000 upon actual export. DISNEY Corp. remitted the amount. The sale is:

a. Subject to 12% VAT

b. Subject to 0% VAT

c. VAT-exempt

d. Subject to percentage tax

6. HK Corp. is a domestic corporation. It sold goods to DISNEY Corp., a non-resident foreign corporation based in the United States of America. HK Corp. billed DISNEY Corp. Php 1 Million upon actual export. The sale is:

a. Subject to 12% VAT

b. Subject to 0% VAT

c. VAT-exempt

d. Subject to percentage tax

7. Due to excessive earnings, the Company declared property dividends where the Board of Directors, in a resolution, resolved to distribute Php 100,000.00 worth of facemasks to the stockholders of record which they can use against Covid-19. The distribution is:

a. A constructive sale subject to 12% VAT

b. A deemed sale but is subject to 0% VAT

c. VAT-exempt as it is used against Covid-19

d. Subject to percentage tax

8. HK Corp. HK Corp. is engaged in the manufacture and sale of facemasks. As a protective measure, it distributed for free 1 box of face masks to all employees which they can use only when they work in the company. The distribution is:

a. A constructive sale subject to 12% VAT

b. A deemed sale but is subject to 0% VAT

c. VAT-exempt as it is used against Covid-19

d. Subject to percentage tax

9. HK Corp. exchanged its property to DISNEY Corp. The exchange is generally:

a. Subject to 12% VAT

b. Subject to 0% VAT

c. VAT-exempt

d. Subject to percentage tax

10. The official document issued by the CIR or his authorized representative authorizing the examination of taxpayer records is called:

a. BIR Authorization Letter

b. E-Letter of Authority

c. Letter Notice

d. Mission Order

11. Nicanor was employed by HK Corp. from April 1, 2019. He receives basic pay of Php 20,000 per month as compensation. During annualization of compensation in November, it was determined that he will also receive the following:

Christmas bonus - Php 5,000 Performance bonus/productivity incentive - Php 10,000 Loyalty award - Php 5,000 Cash gift - Php 5,000 Additional compensation allowance - Php 5,000

How much is the 13th month pay?

a. Php 15,000

b. Php 20,000

c. Php 45,000

d. Php 0

12. In the filing of income tax returns for individual taxpayers, which is TRUE in terms of deadline?

1st QTR ITR - 2nd QTR ITR - 3rd QTR ITR - Annual ITR

a. April 15 - Aug 15 - Nov 15 - Apr 15

b. May 15 - Aug 15 - Nov 15 - Apr 15

c. April 15 - Aug 15 - Nov 15 - May 15

d. 60 days after qtr - 60 days after qtr - 60 days after qtr - Apr 15

13. As the new Accountant, you were reviewing the payroll system of the company. You noticed that supplementary compensation is mingled with regular compensation. Which should form of regular compensation?

a. Commission

b. Cost of living allowance

c. Overtime pay

d. Profit-sharing

14. If HK Corp., a domestic corporation, registered and commenced operations in 2018, the MCIT shall apply in:

a. 2021

b. 2022

c. 2023

d. 2024

15. After its publication, CREATE Law became effective on:

a. June 30, 2020

b. January 1, 2021

c. March 27, 2021

d. April 11, 2021

16. If Berto, a CPA, established a partnership with Duday, a business administration graduate, to establish a business consultancy service, the partnership is:

a. A general professional partnership

b. Is exempted from taxation as the partners are the ones liable for the tax

c. Is not allowed by law

d. Taxable as a corporation

17. The process of reducing the allowable deduction of interest expense by a certain percentage is called?

a. Tax arbitrage

b. Tax Avoidance

c. Tax Limitation

d. Tax Minimization

18. The following persons are your clients:

Nicanor, an employee of ABC Corp. ABC Corp, a foreign corporation doing business in the Philippines XYZ Corp. a foreign corporation based in Europe Inday Manoban, a Thai-Korean and member of the PinkBlack K-Pop Group based in Korea

Who is allowed to claim deduction?

a. ABC Corp

b. Inday

c. Nicanor

d. XYZ Corp

Answer rating: 100% (QA)

ANSWER Here are the answers 1 If books in digital or electronic format and not devoted to publication of paid advertisements and is compliant with the requirements under RA 8047 is sold today the tran... View the full answer