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Final Exam in Taxation Accounting
Final Exam in Taxation Accounting
Final Exam in Taxation Accounting
MARVIN M. CELEDIO,
Statement II Zero rated transactions are allowed with tax credit for Input
VAT attributable to such sales or receipts, while VAT- exempt transaction is
not.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
6. Which of the following transactions are not allowed to deduct input VAT?
a. Importation
b. Zero-rated VAT
c. Sales to the government
d. Sale of VAT-registered person
7. Any person, in the course of business, who sells, barters, exchanges, leases
goods or properties , renders services and imports goods shall be subject to
VAT, except
a. Non-stock and non-profit private organization.
b. Government owned and controlled corporations.
c. Farmers selling their farm food products in their original state.
d. Medical services rendered by professionals.
8. The amount of the sales to a VAT-registered person which requires that the
sales invoice should contain the customers name, address and TIN.
a. P5,000 or more
b. P3,000 or more
c. P2,000 or more
d. P1,000 or more
9. The following business transactions are subject to regular 12% regardless of
the amount of gross receipts of
a. Common carriers by air and sea.
b. Transport of passengers by land.
c. Electric company from sale power generated not using renewable
resources.
d. Transport of goods and cargoes.
10.The VAT-sale of goods or services to the government shall be subject to final
withholding of
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a. 1% or 2% income tax
b. 3% other percentage tax.
c. 5% value-added tax.
d. 7% standard input VAT.
11.X is a VAT-registered professional business with the following reports during
the year:
Collections from clients including VAT
Billings including VAT
P4,480,000
1,680,000
560,000
112,000
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24.The total taxable sales of the non-VAT business are P1, 000,000. Its
purchases form VAT person, inclusive of VAT, is P84, 000. How much is the
amount of input VAT for the period?
a. P 0
b. P7,500
c. P8,250
d. P9,000
25.Which of the following is allowed with tax credit certificate issuance?
a. VAT-exempt sales
b. Regular VAT sales
c. Zero-rated sales
d. Sales to government
26.A VAT-registered business reported the following sales before VAT:
Domestic sales
Export sales
VAT-exempt sales
Sales to government
P1, 125,000
300,000
60, 000
15, 000
If its accumulated input VAT amounts to P80, 000, the amount of total VAT
deductible from sales to government would be
a. P15, 000
b. P1, 800
c. P1, 050
d. P 750
27.The gross receipts of a non-VAT service business is subject to OPT if the
amount
a. Is P1, 919, 500 and below per year
b. Exceeds P 1, 919, 500 per year
c. Is derived from contract growers services
d. Is derived from ecozone customers
28.Which of the following business is not subject to other percentage tax?
a. Carriers of passengers
b. Life insurance
c. Carriers of cargoes
d. Sale of shares of stock in the local stock exchange
29.Which of the following franchise gross receipts is covered by the threshold
amount of P1, 919, 500 per year?
a. Gas
b. Water
c. Radio and television broadcasting companies
d. All of the above
30.The percentage tax rate on shares of stock traded in the stock exchange is
a. of 1% of sales
b. 1 % of capital gain from the transaction
c. 1% of sales which is more than 25% of the outstanding stocks issued
d. 2% of sales which is more than 25% but not more than 33 1/3% of the
outstanding stocks issued
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