BusTax Multiple Choice

Question 1

A person or entity engaged in leasing real property for rental income is called:

a. Real Estate Broker
b. Real Estate Lessor
c. Real Estate Owner
d. Real Estate Developer

Answer 1

b. Real Estate Lessor

Question 2

Which refers to a foreign person or company leasing property located in the Philippines?

a. Domestic Owner
b. Non-Resident Broker
c. Non-Resident Lessor/Owner
d. Tax-Free Lessor

Answer 2

c. Non-Resident Lessor/Owner

Question 3

What document outlines the terms and conditions of a rental agreement?

a. Lease Contract
b. Title Deed
c. Sales Invoice
d. Tax Return

Answer 3

a. Lease Contract

Question 4

What is a payment made ahead of schedule for goods or services?

a. Prepaid Tax
b. Credit Payment
c. Advance Payment
d. Installment

Answer 4

c. Advance Payment

Question 5

Rental paid before the actual rental period begins is called:

a. Delayed Rental
b. Future Rental
c. Prepaid Rental
d. Security Deposit

Answer 5

c. Prepaid Rental

Question 6

A stock corporation earning from real estate assets is known as:

a. Real Estate Corporation
b. Commercial Realty Fund
c. Real Estate Investment Trust (REIT)
d. Land Developer

Answer 6

c. Real Estate Investment Trust (REIT)

Question 7

A commercial service storing goods for a fee is called:

a. Freight Forwarding
b. Warehousing Service
c. Retailing Service
d. Cargo Handling

Answer 7

b. Warehousing Service

Question 8

A business that processes agricultural products like rice is called a:

a. Retailer
b. Miller
c. Trader
d. Importer

Answer 8

b. Miller

Question 9

Who is primarily engaged in the business of buying and selling securities?

a. Banker
b. Dealer in Securities
c. Accountant
d. Stockholder

Answer 9

b. Dealer in Securities

Question 10

A business that lends money for interest is called a:

a. Bank
b. Financing Company
c. Lending Investor
d. Capital Fund

Answer 10

c. Lending Investor

Question 11

Which institution reviews decisions of tax authorities in the Philippines?

a. Supreme Court
b. Court of Appeals
c. Court of Tax Appeals
d. Bureau of Internal Revenue

Answer 11

c. Court of Tax Appeals

Question 12

Which of the following transports goods or passengers for a fee and is open to the public?

a. Private Vehicles
b. Freight Broker
c. Common Carriers
d. Delivery Apps

Answer 12

c. Common Carriers

Question 13

Companies that generate electricity through power plants are:

a. Transmission Companies
b. Power Providers
c. Generation Companies
d. Energy Consultants

Answer 13

c. Generation Companies

Question 14

Which entities are responsible for transporting electricity from power plants to distributors?

a. Distribution Companies
b. Energy Brokers
c. Transmission Companies
d. Common Carriers

Answer 14

c. Transmission Companies

Question 15

Who operates the country’s electricity transmission system?

a. ERC
b. Meralco
c. National Grid Corporation of the Philippines (NGCP)
d. DOE

Answer 15

c. National Grid Corporation of the Philippines (NGCP)

Question 16

Which agency regulates electricity rates and ensures consumer protection?

a. Department of Energy
b. Court of Tax Appeals
c. Energy Regulatory Commission (ERC)
d. National Electrification Administration

Answer 16

c. Energy Regulatory Commission (ERC)

Question 17

Who delivers electricity from the grid to end-users?

a. Retail Companies
b. Generation Companies
c. Distribution Companies
d. Importers

Answer 17

c. Distribution Companies

Question 18

Companies that provide coverage for property and liability risks are:

a. HMO
b. Life Insurance Companies
c. Non-Life Insurance Companies
d. Investment Firms

Answer 18

c. Non-Life Insurance Companies

Question 19

Which company offers pre-arranged plans for education, funeral, or pension services?

a. Pension Fund
b. Pre-Need Companies
c. Mutual Fund
d. Lending Institutions

Answer 19

b. Pre-Need Companies

Question 20

What organization provides prepaid health care services?

a. DOH
b. Insurance Commission
c. Health Maintenance Organization (HMO)
d. Medicard

Answer 20

c. Health Maintenance Organization (HMO)

Question 21

What refers to the total amount received from services or sales, excluding VAT?

a. Net Income
b. Gross Sales
c. Gross Receipts
d. Net Receipts

Answer 21

c. Gross Receipts

Question 21

When income is made available to a taxpayer even if not yet received, it is called:

a. Prepaid Income
b. Constructive Receipt
c. Actual Receipt
d. Earned Revenue

Answer 21

b. Constructive Receipt

Question 22

Which agency promotes investments in economic zones and grants tax incentives?

a. BOI
b. DTI
c. Philippine Economic Zone Authority (PEZA)
d. BIR

Answer 22

c. Philippine Economic Zone Authority (PEZA)

Question 22

Which refers to sales subject t 0% VAT, usually for export or PEZA-registered firms?

a. Exempt Sales
b. Zero-Rated Sales of Services
c. Standard-Rated Sales
d. Deferred Sales

Answer 22

b. Zero-Rated Sales of Services

Question 23

Bringing goods into the country from abroad is known as: a. Export b. Local Purchase c. Importation of Goods d. Smuggling

Answer 23

c. Importation of Goods

Question 24

What is the VAT paid by a registered person on purchases of goods or services? a. Output Tax b. Deferred Tax c. Input Tax d. Sales Tax

Answer 24

c. Input Tax

Question 25

The VAT collected on sales or services rendered is known as: a. Output Tax b. Input Tax c. Collection Tax d. Gross VAT

Answer 25

a. Output Tax

Question 26

A transaction treated as a sale even without actual transfer is called: a. Special Sale b. Nominal Sale c. Deemed Sale d. Unauthorized Sale

Answer 26

c. Deemed Sale

Question 27

Ongoing construction work that's not yet completed is referred to as: a. Construction Work b. Construction in Progress c. Unfinished Project d. Delayed Capital Asset

Answer 27

b. Construction in Progress

Question 28

A tax credit granted when one becomes VAT-registered and holds inventory is: a. Deferred VAT b. Presumptive Input Tax c. Transitional Input Tax d. Creditable Tax

Answer 28

c. Transitional Input Tax

Question 29

A fixed-rate input tax given to certain taxpayers is: a. Deferred Input b. Transitional Tax c. Presumptive Input Tax d. Zero-rated Input

Answer 29

c. Presumptive Input Tax

Question 30

Input tax that can be deducted from output tax is: a. Refundable Input b. Creditable Input Tax c. Deferred Input Tax d. Inventory Tax

Answer 30

b. Creditable Input Tax

Question 31

What is the amount payable to BIR when output tax exceeds input tax? a. Input Credit b. Tax Refund c. VAT Payable d. Output Income

Answer 31

c. VAT Payable