University of Cebu - Main Campus
ACCOUNTING 1
EarlMeerkat1419
1. S1: The power of taxation involves raising money for the government.
S2: The power of
... [Show More] eminent domain raises money for the government.
a. Only S1 is true
b. Only S2 is true
c. Both are true
d. Both are false
2. S1: Direct tax, the impact of taxation and incidence of taxation lie on the same subject.
S2: Direct tax, the impact of taxation lies on one person while the incidence of taxation lies on another
person.
S3: Value added tax is an example of an indirect tax as the impact of taxation lies on the seller, while the
incidence of taxation may be shifted to the buyer.
a. Only S1 is true
b. Only S2 is true
c. Only S3 is true
d. All is false
3. A tax reform at any given time underscores the fact that: Choose the best statement.
a. Tax is an inherent power of the state
b. Tax is essentially a legislative power
c. Taxation is a power that is very broad
d. The state can and should adopt progressive or regressive taxation whichever is more favorable to the
State and the taxpayer
4. S1: The National government, including its political subdivisions, has the power to tax inherently.
S2: The provisions of the Philippine Constitution on Taxation are grants of power.
a. Only S1 is true
b. Only S2 is true
c. Both are true
d. Both are false
5. S1: The Bureau of Internal Revenue (BIR) is directly under the supervision of the Department of
Trade and Industry
S2: The Bureau of Customs is under the direct supervision of the Department of Trade and Industry
a. Only S1 is true
b. Only S2 is true
c. Both are true
d. Both are false
6. S1 – Carla, a NRC based in Canada opened a bank account in ABC Bank, a DC. The source of the interest
income of Carla is derived from within the Philippines.
S2 – Carla, a RA, opened a bank account in ABC Bank, a DC. The source of the interest income of Carla is
derived from within the Philippines.
S3 – Carla, a NRAETB opened a bank account in ABC Bank, a DC. The source of the interest income of Carla
is derived from within the Philippines.
S4 – Carla, a NRANETB opened a bank account in ABC Bank, a DC. The source of the interest income of
Carla is derived from within the Philippines.
Which is FALSE?
a. S1
b. S2
c. S3
d. S4
e. None
7. S1 – Kaloy, a NRC based in Canada opened a bank account in ABC Bank, a NRFC. The income is subject
to 20% final tax.
S2 – Kaloy, a RA, opened a bank account in ABC Bank, a DC. The withholding agent is the bank.
S3 – Kaloy, a NRAETB opened a bank account in ABC Bank, a DC. The interest income is not required
to be reported by Kaloy.
S4 – Kaloy, a NRANETB opened a bank account in ABC Bank, a NRFC. The interest income is exempt from
taxation
Which is FALSE? [Show Less]