December 15, 2023

MGA20B

1. What is the first step in computing the amount billable to a senior citizen?
a. Determine the selling price
b. Compute the 20% senior citizen discount
c. Determine the amount of VAT exempt sale
d. Compute the billable amount

2. What is the formula for computing the 20% senior citizen discount?
a. Senior Citizen Discount = VAT Exempt Sale x 20%
b. Senior Citizen Discount = Selling Price x 20%
c. Senior Citizen Discount = Selling Price / 1.20
d. Senior Citizen Discount = VAT Exempt Sale / 0.20

3. When is the entire selling price considered as VAT exempt sale?

a. When the customer is a senior citizen
b. When the company is VAT-registered
c. When the company is non-VAT registered
d. When the customer is a non-senior citizen

4. In computing the billable amount to a senior citizen, what is deducted from the VAT exempt
sale?
a. Selling price
b. Senior Citizen Discount
c. VAT rate
d. VAT Exempt Sale

5. If a senior citizen purchases an item with a VAT exempt sale of P2,500, what is the 20% senior
citizen discount?
a. P500
b. P300
c. P250
d. P600

6. A product has a selling price of P5,000. What is the amount of VAT exempt sale for a VAT-
registered company?
a. P4,464.29
b. P4,545.45
c. P5,000
d. P4,800

7. For a non-VAT registered company with a selling price of P3,600, what is the amount billable
to a senior citizen after applying the 20% discount?
 a. P2,880
b. P3,000
c. P3,200
d. P3,600

8. If a product has a selling price of P7,200, what is the VAT exempt sale for a VAT-registered
company?
a. P6,428.57
b. P6,500
c. P6,000
d. P7,200

9. A senior citizen purchases an item with a VAT exempt sale of P4,000. What is the billable
amount after applying the 20% discount?
a. P3,200
b. P3,400
c. P3,600
d. P3,200

10. What is the name of the act that provides additional benefits to solo parents?
a. Republic Act No. 11861
b. Republic Act No. 11261
c. Republic Act No. 11681
d. Republic Act No. 11186

11. What is the income threshold for solo parents to qualify for the 10% discount and VAT
exemption?
a. P200,000
b. P250,000
c. P300,000
d. P350,000

12. Which of the following is not eligible for the 10% discount and VAT exemption for qualified
solo parents?
a. Baby's milk
b. Food supplements
c. Educational materials
d. Medicines

13. What documentation must solo parents present to avail of the 10% discount and VAT
exemption?
a. Birth certificate of the child
b. Solo Parent Identification Card (SPIC) and Solo Parent Booklet
c. Proof of employment
d. Utility bills
14. What type of sales establishments can offer the 10% discount and VAT exemption to qualified
solo parents?
a. Restaurants
b. Hardware stores
c. Drug stores, pharmacies, grocery stores, and similar establishments
d. Clothing boutiques

15. What expenses can business establishments claim as a tax deduction based on the cost of goods
sold?
a. Discounts granted to senior citizens
b. Discounts granted to government employees
c. Discounts granted to solo parents
d. Advertising expenses

16. What condition must be met for the discount granted by the seller to be treated as an ordinary
and necessary expense deductible from the gross income?
a. The seller must be a small business
b. The seller must opt for the Optional Standard Deduction
c. The discount must be exclusively used, consumed, or enjoyed by the solo parent's child
aged six or under
d. The seller must have multiple branches

17. Which of the following goods is not eligible for the 10% discount and VAT exemption for
qualified solo parents?
a. Vaccines
b. Sanitary diapers
c. Pet food
d. Food supplements

18. What must be separately indicated in the sales invoice issued by the establishment for the sale
of goods to solo parents?
a. Percentage of profit margin
b. Gross selling price and sales discount
c. Employee identification number
d. Manufacturer's address

19. What is the consequence if a seller claims the Optional Standard Deduction during the taxable
year?
a. Ineligibility to offer discounts to solo parents
b. Ineligibility for tax deductions
c. Imposition of penalties
d. Exemption from VAT

20. If a buyer is both a Senior Citizen (SC) and a Person with Disability (PWD), what discount is
the buyer entitled to based on their valid SC ID or PWD ID?
a. Only a 15% discount with VAT exemption
 b. Only a 20% discount with VAT exemption
c. Only a 5% special discount with VAT exemption
d. Both a 20% discount with VAT exemption and a 5% special discount

21. How are drugs categorized for the purpose of determining the rightful statutory discount for
Senior Citizens (SC) and Persons with Disabilities (PWD)?
a. Essential drugs receive a 20% discount, while non-essential drugs receive a 15% discount
b. Essential drugs are considered Prime Commodities, while non-essential drugs are Basic
Necessities
c. Essential and non-essential drugs both receive a flat discount of 20%
d. Essential drugs are not eligible for any discount, while non-essential drugs receive a 20%
discount

22. What is the maximum total amount for the offline and online purchase of Senior Citizens (SCs)
and Persons with Disabilities (PWDs) per calendar week, unless otherwise increased?
a. P 1,000 with carry-over of the unused amount
b. P 1,300 without carry-over of the unused amount
c. P 1,500 with carry-over of the unused amount
d. P 1,300 with carry-over of the unused amount

23. What documentation must a Senior Citizen (SC) present for identification when availing of
privileges and benefits?
a. SC Identification Card (ID) issued by the office of the Senior Citizens Affairs (OSCA)
only
b. Any government-issued ID reflecting the name, picture, date of birth, and nationality of
the senior citizen only
c. Both the SC Identification Card (ID) issued by the office of the Senior Citizens Affairs
(OSCA) and any government-issued ID
d. Birth certificate and any government-issued ID reflecting the name, picture, date of birth,
and nationality of the senior citizen

24. If a purchaser is both a Senior Citizen (SC) and a Person with Disability (PWD), what is the
entitlement regarding availing discounts?
a. The purchaser can avail both the SC and PWD discounts simultaneously
b. The purchaser can only avail the discount for SCs and must present the relevant ID
c. The purchaser can only avail the discount for PWDs and must present the relevant ID
d. The purchaser is not entitled to any discounts if they are both a SC and a PWD

25. Who has the authority to purchase products for a child with disability and what is required for
the purchase?
a. Only the child with disability can purchase, and no specific requirement is needed
b. Only the parents have the authority to purchase, and they must present the child's ID
as required
c. Only the legal guardian can purchase, and they must present their own ID
d. The child with disability, parents, and legal guardian can all make purchases, each
presenting their respective IDs
26. How is the 20% discount calculated for the purchase of group meals by Senior Citizens (SCs)
and Persons with Disabilities (PWDs) in quick service restaurants?
a. The discount is based on the total amount spent on group meals
b. The discount is based on the combination of the most expensive and biggest single
servicing meal with beverage
c. The discount is a flat 20% regardless of the meal combination
d. The discount is only applicable to individual servings, not group meals

27. What is the requirement for Senior Citizens (SCs) or Persons with Disabilities (PWDs) when
making purchases through the internet or online platform?
a. They must provide their medical records
b. They must declare to the online platform/merchant that they are a SC or a PWD prior
to placing an order
c. They are not allowed to make purchases online
d. They must physically visit the merchant to declare their status as a SC or a PWD

28. What is required for Senior Citizens (SCs) or Persons with Disabilities (PWDs) upon delivery
of goods or performance of services purchased through an online platform?
a. They must present their birth certificate
b. They must present the original copy of the SC or PWD proof of entitlement attached
during the confirmation of their orders, along with an authorization letter if
applicable
c. They are not required to present any documentation
d. They must provide a verbal confirmation of their status as a SC or a PWD to the delivery
personnel

29. What are the rules for purchases made through telephone or mobile phone call for Senior
Citizens (SCs) or Persons with Disabilities (PWDs)?
a. SCs and PWDs are not allowed to make purchases through telephone or mobile phone call
b. The same rules as online purchases apply, and they must declare their status as a SC
or a PWD prior to placing an order
c. They are entitled to a higher discount when making purchases through telephone or mobile
phone call
d. The rules for telephone or mobile phone call purchases are different for SCs and PWDs

30. What action can business establishments take in response to abuse, misinterpretations, or
falsification related to the availment of the Senior Citizen (SC) or Person with Disability
(PWD) discount?
a. They can file a legal case against the erring person
b. They can issue a warning to the erring person
c. They can suspend the account or name of the erring person
d. They are not allowed to take any action against the erring person

31. What consequences may individuals or business establishments face for failing to observe the
statutory discount afforded to Senior Citizens (SCs) and Persons with Disabilities (PWDs)?
 a. They may receive a warning from the government agency responsible for SC and PWD
welfare
b. They may be exempt from penalties if they can provide a valid reason for the failure to
observe the discount
c. They may face liability for the penalties provided by law
d. They may be required to provide additional discounts in the future to compensate for the
failure

32. Which of the following items are classified as necessities for which PWDs can receive
discounts?
a. Soft drinks and carbonated beverages
b. Imported luxury goods
c. Rice and corn
d. Alcoholic beverages

33. Which of the following items are classified as prime commodities for which PWDs can receive
discounts?
a. Luxury watches and jewelry
b. Imported designer clothing
c. Fresh fruits and meat products
d. Expensive perfumes and cosmetics

34. Which of the following government agencies is compulsory for PWD workers to be a member
of?
a. Department of Labor and Employment (DOLE)
b. Bureau of Internal Revenue (BIR)
c. Social Security System (SSS)
d. Department of Trade and Industry (DTI)

35. PWDs have access to financial aid in the form of scholarships, educational grants, and
subsidies for which of the following educational levels?
a. Only for public schools
b. Only for private schools
c. Both public and private schools
d. Only for vocational schools

36. What is required of establishments with regard to serving PWDs in commercial and
government transactions?
a. Provide free products and services to PWDs
b. Implement a reservation system for PWDs
c. Create express lanes for PWDs
d. Assign personal assistants to PWDs

37. What percentage of all positions in government agencies is reserved for persons with
disabilities?
a. 2 percent
 b. 3 percent
c. 1 percent
d. 5 percent

38. In the absence of presenting their Senior Citizen or PWD ID, what action may the
platform/merchant take regarding the purchase of goods or services by senior citizens or
persons with disabilities?
a. Provide the goods or services for free as a one-time courtesy.
b. Offer a partial discount as a goodwill gesture.
c. Charge the full amount of the goods or services.
d. Suspend the transaction until proper documentation is provided.

39. What must senior citizens or persons with disabilities do upon the delivery of goods/services
or performance of service?
a. They must pay for the goods or services before receiving them.
b. They must present their proof of entitlement and an authorization letter, if applicable,
to the business establishment or its third-party service provider.
c. They are not required to present any documentation upon delivery.
d. They must negotiate the discount with the business establishment before receiving the
goods or services.

40. What action may the platform/merchant take if an individual fails to present their Senior
Citizen or PWD ID and authorization letter, if applicable?
a. Provide the goods or services for free as a one-time courtesy.
b. Offer a partial discount as a goodwill gesture.
c. Charge the full amount of the goods/orders or service.
d. Provide a rain check for the next purchase.