BSA403 Quiz#1

World Citi Colleges Antipolo City
156 M.L. Quezon Avenue Antipolo City Antipolo City

Prelim Quiz #1
Seatwork
(Instructor's Copy)
Duration : Sep 15, 2021 11:00 AM - Sep 15, 2021 11:59 PM Shuffled Question : Yes
Time Limit : 90.00 View Score After : Yes
Passing Score : 13.00 View Result After : Yes
Teacher : Christian Fev Cendana
Objective:
Direction: Choose the letter of the correct answer.
Multiple Choice
1) Estate tax is an excise tax. (1.00 pt/s.)
A. True
B. False
Answer: A
Correct answer explanation : N/A
2) Executor is the person appointed by a court to carry out the directions and request of a decedent in his will and to
dispose of his property according to his testamentary provisions after his death. (1.00 pt/s.)
A. True
B. False
Answer: B
3) Which of the following statements is FALSE? transfer tax is __________________________ (1.00 pt/s.)
A. Imposed upon gratuitous transfer of property

B. Of two kinds: estate tax and donor's tax
C. Classified as national tax
D. None of the above
Answer: D
4) The object of estate tax is the: (1.00 pt/s.)
A. Right to transmit
B. Decedent
C. Properties of the decedent
D. Beneficiaries
Answer: A
5) Mortis causa transfer of property is effected: (1.00 pt/s.)
A. When the property is received by the heir

B. When the court awarded the ownership of property to a particular heir
C. Upon the death of the decedent
D. Upon payment of estate tax.
Answer: C
6) Estate tax is a tax imposed on the privilege that a person is given in the disposition of his property, either by will or by
operations of law, to take effect upon death. (1.00 pt/s.)
A. True
B. False
Answer: A
7) Under the "ability to pay theory", the imposition of estate tax is justifiable because it reduces the property received by
the successor, thus, helping to promote equitable distribution of wealth in society. (1.00 pt/s.)
A. True
B. False
Answer: A
8) An excise tax on transfer inter-vivos. (1.00 pt/s.)
A. Donor's tax
B. Estate tax
C. Income tax
D. VAT
Answer: A
9) When will the transfer through succession be effective? (1.00 pt/s.)
A. Upon the signing of a written will

B. Upon payment of estate tax
C. Upon death of the testator
D. Upon registration in the register of deeds
Answer: C
10) Which is not a test of situs? (1.00 pt/s.)
A. Residence of the debtor in case of accounts receivable

B. Place of storage in case of certificates of stocks
C. Location of depository bank in case of bank deposit
D. Place of exercise in case of copyright.
Answer: B
11) Deductions from gross estate are highly disfavored in law; he who claims deductions must be able to justify his claim
or right. (1.00 pt/s.)
A. True
B. False
Answer: A
12) Deductions from the gross estate are generally presumed to be conjugal deductions, unless specifically provided
otherwise. (1.00 pt/s.)
A. True
B. False
Answer: A
13) Obligations contracted by a person during his lifetime are terminated upon his death (1.00 pt/s.)
A. True
B. False
Answer: B
14) Which of the following statements is true? (1.00 pt/s.)
A. Deductions from gross estate are highly disfavored in law; he who claims deductions must be able to justify his claim
or right.
B. Receipts of invoices or other evidence to show that the expense was really incurred, if applicable, must duly support
deductions against the gross estate.
C. Both "a and b"
D. Neither "a or b"
Answer: C
15) Which is false? (1.00 pt/s.)
A. The estate tax is computed based on the net estate or taxable estate
B. The net estate is determined by subtracting from the gross estate the deductions authorized by law.
C. Both "a and b"
D. Neither "a nor b"
Answer: D
16) Which among the following statements is correct?

I. An obligation that had prescribed already during the lifetime of the decedent, or that was unenforceable against him
when still alive, will not be claim against his estate when he shall be dead.
II. If a monetary claim against the decedent did not arise out of a debt instrument, the requirement on a notarized
instrument does not apply. (1.00 pt/s.)
A. I only
B. II only
C. Both I and II
D. Neither I nor II
Answer: C
17) The gross estate of a married decedent under the system of conjugal partnership of gains during the marriage is a
mixture of his exclusive property and conjugal property. (1.00 pt/s.)
A. True
B. False
Answer: A
18) Funeral expenses are no longer deductible from the gross estate of a decedent beginning January 1, 2018. (1.00
pt/s.)
A. True
B. False
Answer: A
19) Property inherited before the marriage becomes community property upon marriage. (1.00 pt/s.)
A. True
B. False
Answer: A
20) In the absence of a marriage settlement, or when the regime agreed upon is void, the property relations of the
spouses who married before August 3, 1988 shall be governed by: (1.00 pt/s.)
A. Absolute community of properties

B. Conjugal partnership of gains
C. Absolute separation of properties
D. No property relations
Answer: B
21) In the absence of a marriage settlement, or when the regime agreed upon was void, the property relations of the
spouses who were married on or after August 1988 would be: (1.00 pt/s.)
A. Absolute community of property

B. Conjugal partnership of property
C. Absolute separation of gains
D. Either absolute community or conjugal partnership of gains
Answer: A
22) Tax credit for death taxes paid to a foreign country is not allowed to a decedent who was (1.00 pt/s.)
A. Non-resident citizen of the Philippines

B. Resident alien decedent
C. Non-resident alien with intagible personal property in the Philippines and there is reciprocity
Answer: C
23) Which of the following is not allowed with tax credit for payments of estate tax on foreign countries? (1.00 pt/s.)
A. An American residing in the Philippines at the time of death

B. A Filipino who migrated in the United States
C. An alien who was a resident of his own country at the date of death
Answer: C
24) Statement 1: Tax credit for foreign estate tax is allowed to minimize the effect of multiplicity of situs.
Statement 2: Filipino citizen decedents whether resident or non-resident are allowed of tax credit for foreign estate tax.
(1.00 pt/s.)
A. Statements 1 and 2 are false

B. Statement 1 is true but statement 2 is false.
C. Statement 1 is false but statement 2 is true.
D. Statements 1 and 2 are true.
Answer: D
25) A Filipino taxpayer died in 2021 leaving the following:

Net taxable estate, Philippines, P 3,000,000; Net estate-Korea, P 1,000,000; Estate tax paid in Korea, P 80,000
How much is the estate tax due after tax credit? (1.00 pt/s.)
A. P60,000
B. P180,000
C. P200,000
D. P240,000
Answer: B
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World Citi Colleges Antipolo City

156 M.L. Quezon Avenue Antipolo City Antipolo City

Time Limit : 90.00 View Score After : Yes

Passing Score : 13.00 View Result After : Yes

Teacher : Christian Fev Cendana

Direction: Choose the letter of the correct answer.

1) Estate tax is an excise tax. (1.00 pt/s.)

A. Imposed upon gratuitous transfer of property

4) The object of estate tax is the: (1.00 pt/s.)

5) Mortis causa transfer of property is effected: (1.00 pt/s.)

A. When the property is received by the heir

8) An excise tax on transfer inter-vivos. (1.00 pt/s.)

9) When will the transfer through succession be effective? (1.00 pt/s.)

A. Upon the signing of a written will

10) Which is not a test of situs? (1.00 pt/s.)

A. Residence of the debtor in case of accounts receivable

14) Which of the following statements is true? (1.00 pt/s.)

15) Which is false? (1.00 pt/s.)

16) Which among the following statements is correct?

A. Absolute community of properties

A. Absolute community of property

A. Non-resident citizen of the Philippines

A. An American residing in the Philippines at the time of death

A. Statements 1 and 2 are false

25) A Filipino taxpayer died in 2021 leaving the following:

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