Reference no: EM132654327

Questions -

Q1. The following are requisites of gross income, except?

a. Return on capital

b. Realization should be actual or physical receipt of payment

c. Increase in net worth

d. Realized benefit

Q2. Which of the following is subjected to income tax?

a. Receipt of cash from a deceased ancestor

b. Receipt of goods without any consideration from a relative

c. Cancellation of indebtedness in exchange for professional services received from the debtor

d. Cancellation of debt out of kindness

Q3. The taxpayer received P900,000 from the insurance company representing claims from destroyed crops of P550,000 and the damaged warehouse of p350,000. Which of the following statement is correct?

a. The P550,000 is taxable

b. The P900,000 is nontaxable

c. The P350,000 is taxable

d. The P900,000 is taxable

Q4. The following were received by the taxpayer during the year

P40,000 - as reimbursement for the office supplies he purchased using his own money

P30,000 - as payment for his professional fees rendered to clients

P100,000- as salaries as part time accountant

P20,000 - as sickness benefit from sss

How much of the above is not subject to tax?

a. 70,000

b. 60,000

c. 90,000

d. 40,000

Q5. A Filipino went abroad on May 1. 2020 and returned to the Philippines on November 15, 2020. in 2020 he is considered as

a. resident alien

b. resident citizen

c. nonresident citizen

d. nonresident alien

Q6. An amount received by the taxpayer was subjected to final tax. which of the following statement is not correct?

a. the final tax is not paid by the income earner as it was withheld at source

b. it will no longer be subjected to regular income tax

c. it may also be subjected to regular income tax

d. it will not be subjected to capital gains tax

Q7. Recovery of lost income is?

a. Partly income subject to tax and partly nontaxable

b. Not taxable

c. An income subject to tax

d. Exempt from tax