This quiz works best with JavaScript enabled. Home > Finance > Accounting > Taxation > Taxation – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Taxation Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. True or False:Social Security cannot pay you your full benefits if you do not have enough credits. A) True. B) False. Show Answer Correct Answer: A) True. 2. A taxpayer that derived income solely from business is required to file BIR Form 1700. A) FALSE . B) TRUE. Show Answer Correct Answer: A) FALSE . 3. ..... are funds used not only to keep the government machinery going, but also to enable the government to carry out its various fiscal functions of allocation, distribution, and stabilization A) Public revenues. B) Monetary Policy. C) Grants. D) Fiscal Policy. Show Answer Correct Answer: A) Public revenues. 4. Non-Taxable Income for married status is A) Rp4.500.000. B) Rp5.400.000. C) Rp45.000.000. D) Rp54.000.000. Show Answer Correct Answer: A) Rp4.500.000. 5. The benefit of section 54 is available only to an individual or a HUF. A) False. B) True. Show Answer Correct Answer: B) True. 6. Goods and Services tax are the example of ..... A) Indirect tax. B) Direct Tax. C) IT. D) GST. Show Answer Correct Answer: A) Indirect tax. 7. GST rates applicable on goods and services are: A) 0% 5% 12% 18% 28%. B) 0% 5% 12% 16% 28%. C) 0% 6% 12% 18% 28%. D) 0% 5% 12% 18% 26%. Show Answer Correct Answer: A) 0% 5% 12% 18% 28%. 8. An employee must be able to provide evidence of all expenses if required by A) True. B) False. Show Answer Correct Answer: A) True. 9. Money taken by the government for public use A) Parliament. B) Taxes/taxation. C) Smuggle. D) Boycott. Show Answer Correct Answer: B) Taxes/taxation. 10. A non resident Indian is not liable to pay tax on his income received in India. A) True. B) False. Show Answer Correct Answer: B) False. 11. The tax you pay on money you receive from various sources A) Income tax. B) Corporate income tax. C) Excise tax. D) Estate tax. Show Answer Correct Answer: A) Income tax. 12. Companies pay this tax on their profits. A) Stamp duty. B) Income tax. C) Corporation tax. D) Inheritance tax. Show Answer Correct Answer: C) Corporation tax. 13. A tax that only applies to certain products A) Progressive Tax. B) Social Security Tax. C) Income Tax. D) Excise Tax. Show Answer Correct Answer: D) Excise Tax. 14. A direct tax cannot be shifted to another. A) False. B) True. Show Answer Correct Answer: B) True. 15. This amendment gave our government the power to collect taxes based on people's income. A) 17th. B) 15th. C) 16th. D) 18th. Show Answer Correct Answer: C) 16th. 16. Jake wants to purchase a video game for $ 10. Jake hands the cashier a $ 10 bill plus two $ 1 bills for tax. What tax is Jake paying? A) Income Tax. B) Payroll Tax. C) Property Tax. D) Sales Tax. Show Answer Correct Answer: D) Sales Tax. 17. GST is imposed on the production of all services and goods, except ..... A) Liquor intended for human ingestion. B) Tobacco. C) Health care service. D) All of the above. Show Answer Correct Answer: A) Liquor intended for human ingestion. 18. Income Tax is levied on the ..... of a person. A) Total Income. B) Gross Total Income. C) Total Income-Debt. D) Net Income-Debt. Show Answer Correct Answer: A) Total Income. 19. Money from taxes is called? A) Revenue. B) Wampum. C) Greenbacks. D) Continentals. Show Answer Correct Answer: A) Revenue. 20. If the income is below 1, 00, 000, or 1, 00, 000 the tax rate is ..... A) 10%. B) 20%. C) NIL. D) 30%. Show Answer Correct Answer: C) NIL. 21. The tax payer liability is determined with reference to his or her. A) Financial status. B) Residential status. C) All of the above. D) None of the above. Show Answer Correct Answer: B) Residential status. 22. Profits & Gains of any business or profession carried on by the assessee is taxable u/h PGBP. A) At any time during the year. B) For the whole year. C) Consistently. D) In the last year. Show Answer Correct Answer: A) At any time during the year. 23. When correctly levied this tax is the same regardless if it is new, old, small or large. A) Property tax. B) Income tax. C) Mortgage tax. D) Retirement tax. Show Answer Correct Answer: A) Property tax. 24. What is the formula for calculating Taxable Income? A) Deductions + Tax Payable. B) Gross Income-Tax Payable. C) Gross Income + Deductions. D) Gross Income-Deductions. Show Answer Correct Answer: D) Gross Income-Deductions. 25. What is NOT true about taxes A) The government collects them. B) You pay them every hour. C) You can store them in the bank. D) None of above. Show Answer Correct Answer: B) You pay them every hour. 26. In 2015, Mr.Canes, a Filipino and permanent resident of Oslo, Norway, purchased a two-bedroom condominium unit at Rockwell, Makati City for the use of his family members. The purchase price came from his earnings in Norway. In 2017, he decided to sell the unit to Mr. Hockey, a permanent resident of London. The contract was entered into in Oslo, and was paid for in Euros. Mr. Hicks intended to use the proceeds to purchase a coffee shop in Boracay. For purposes of Philippine Taxation, the sale of the condominium unit shall: A) Not be subject to tax because the transaction was between parties who are not Philippine residents. B) Be taxable because the condominium is a real property located within Philippine territory. C) Not subject to tax because the transaction was consummated outside the Philippine territory and paid in foreign currency. D) None of above. Show Answer Correct Answer: B) Be taxable because the condominium is a real property located within Philippine territory. 27. What is tax evasion? A) Is not declared to the tax authorities. B) False declaration to tax authorities. C) Both A and are wrong. D) Both A and are correct. Show Answer Correct Answer: D) Both A and are correct. 28. Who is taxpayer for VAT? A) Seller. B) Distributor. C) Government. D) Buyer. Show Answer Correct Answer: D) Buyer. 29. This tax is levied on both goods and services. A) Traiff tax. B) Excise tax. C) Customs suty tax. D) Import tax. Show Answer Correct Answer: B) Excise tax. 30. Which statement describes a progressive tax? A) A tax that increases government income over time. B) A tax that rises in line with the rate of inflation. C) A tax that has a higher percentage rate as income rises. D) A tax that places an increasing burden on the poor. Show Answer Correct Answer: C) A tax that has a higher percentage rate as income rises. 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