University of Perpetual Help System laguna – Isabela Campus

Minante 1, Cauayan City, Isabela

College of Business and Accountancy

Business Taxation
2 nd
Semester, A.Y. 2017 - 2018

Name: ________________________________________ Date: ___________

Course Year & Section: _____________________ Score: __________
Final Quiz 1

(Erasure/Alteration means wrong)

MULTIPLE CHOICE: Choose the best answer. Encircle the letter of your choice. Show you solutions
for questions 11 to 18.

1. Which statement is wrong? (1 Point)

A. The percentage taxes are paid monthly.

B. The percentage taxes are basically on sale of services.
C. The percentage taxes are not allowed by law to be shifted to the customer or clients.
D. An isolated transaction not in the course of business shall not result in a liability for a
percentage tax.

2. Which of the following is not true? (1 Point)

A. Is a tax on a sale of services.

B. Maybe imposed on a sale of goods.
C. Maybe imposed together with the excise tax.
D. Maybe imposed together with the value-added tax.

3. One of the following is wrong: Operators of transport facilities are: (1 Point)

A. Subject to the percentage tax on gross receipts from transporting passengers.

B. Subject to the value-added tax on gross receipts from transporting passengers.
C. Subject to the value-added tax on gross receipts from transporting goods and cargoes.
D. Subject to the value-added tax on gross receipts from renting out its transportation
facilities.

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4. Statement 1: The percentage taxes should be paid within twenty (20) days after the close of
the month.
Statement 2: There can be a withholding tax on a payment which shall be subject to a
percentage tax on the recipient. (1 point)

A. Both are true.

B. Both are false.
C. Only statement 1 is true.
D. Only statement 2 is true.

5. One of the following is not subject to amusement tax on gross receipts (1 point)

A. Cockpits.
B. Disco houses.
C. Bowling alleys.
D. Professional basketball.

6. All of the following except one are liable to 0.6% stock transaction tax. (1 point)

A. Estates and trust.

B. Dealers in securities.
C. Individual taxpayers, whether citizens or aliens.
D. Corporate taxpayers, whether domestic or foreign.

7. Franchise grantees of gas and water utilities are subject to franchise tax of (1 point)

A. 2%
B. 3%
C. 4%
D. 5%

8. Which of the following is not subject to 3% percentage tax? (1 point)

A. Franchise grantee of electric utilities.

B. Domestic carriers and keepers of garage.
C. International are carrier doing business in the Philippines.
D. International shipping carrier doing business in the Philippines.

9. Taxpayers which are subject to other percentage taxes are generally required to file its tax
return within 25 days after the end of each month. (1 point)

A. True
B. False

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10. When the restaurant is maintained within the premises or compound of a night club, the
gross sales of such restaurant is subject to VAT. (1 point)

A. True
B. False

11. AAA, operates a convenience store, from which the gross receipts from sales, and payments
on purchases from VAT-registered suppliers, were as follows:

Sales of processed food items P560,000

Sales of non-food items 440,000
Purchases of processed food items 200,000
Purchases of non-food items 160,000
Salaries of helpers 96,000

The percentage tax due (2 points)

A. P30,000
B. P54,400
C. P64,000
D. P100,000

12. BBB, is a holder of franchise to sell electricity. In a particular quarter, its gross receipts
amounted to P2,000,000 from sale of electricity. It has also receipts from the lease of its
auditorium and theater amounting to P600,000.

The percentage tax due for the quarter is (2 points)

A. P 40,000
B. P 60,000
C. P100,000
D. None

13. In the third quarter of 2017, a taxpayer engaged in the sale of services whose annual gross
receipts do not exceed P1,919,500 has the following data

Accounts receivable, beginning of the quarter P 75,000

Sales during the quarter 100,000
Accounts receivable, end of the quarter 50,000
Purchase of supplies, total invoice amount 11,200

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 The percentage tax due for quarter is (2 points)

A. P2,250
B. P3,000
C. P3,750
D. P6,500

14. CCC is a common carrier by land and sea within the Philippines. It had the following data in
a month.

On land carriers:
Gross receipts from cargoes P 700,000
Gross receipts from passengers 500,000

On sea carriers:
Gross receipts from cargoes 900,000
Gross receipts from passengers 1,000,000

The percentage tax due is (2 points)

A. P15,000
B. P21,000
C. P36,000
D. Some other amount.

15. DDD has franchises on public utilities. X Co. is in radio broadcasting, Y Co. in in generating
and selling electricity, and Z Co. in distributing water in their franchise areas. The radio
broadcasting is in its first year of operations, and it did not register as a VAT taxpayer. Data in
particular month, any tax not included, follow:

Gross receipts:
X Co., for time sold to its clients P1,000,000
Y Co., for electricity supplied to its customers 1,500,000
Y Co., for leasing electrical equipment to a subdivision 450,000
Z Co., for water supplied to its customers 1,450,000
Z Co., for leasing recreation areas within its water filter sites 100,000

How much was the aggregate of the franchise taxes paid? (2 points)

A. P58,000
B. P65,000
C. P118,000
D. Some other amount.

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16. EEE is a businessman with transactions in and out of the Philippines. Local and overseas
calls for period involved (any tax not included):

Overseas calls:
For calls originating from the Philippines:
Paid by the subscriber in the Philippines P130,000
Paid by the receiver of the call outside the Philippines 29,000
For calls coming into the Philippines:
Paid by EEE 30,000
Paid by callers 46,000

Local calls, paid by EEE

Other than long distances 14,000
Long distance 40,000

Percentage tax billed to EEE? (2 points)

A. P13,000
B. P17,000
C. P18,400
D. Some other amount.

17. A domestic corporation sold al is initial public offering (IPO) of 100,000 shares for P16 per
share. Before the IPO there were 300,000 shares outstanding.

The stock transactions tax is (2 points)

A. P16,000
B. P32,000
C. P64,000
D. Some other amount.

18. FFF Co., a closely held corporation was permitted to increase its authorized capital stock and
make an initial public offering for an aggregate selling price of P4,000,000. The proportion
of ownership, after the initial public offering would be as follows:
To the original stockholders’ 75%
To the new stockholders’ 25%

How much is the stock transaction tax of FFF Co.? (2 points)

A. P 40,000
B. P 80,000
C. P160,000
D. Some other amount

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