MULTIPLE CHOICE 3

Question 1

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 1

✅ Answer: C

Question 2

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 2

✅ Answer: B

Question 3

Which refers to sales subject to 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 3

✅ Answer: B

Question 4

Which agency promotes investments in economic zones and grants tax incentives?
A. BOI
B. DTI
C. Philippine Economic Zone Authority (PEZA)
D. BIR

Answer 4

✅ Answer: C

Question 5

Bringing goods into the country from abroad is known as:
A. Export
B. Local Purchase
C. Importation of Goods
D. Smuggling

Answer 5

✅ Answer: C

Question 6

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 6

✅ Answer: C

Question 7

The VAT collected on sales or services rendered is known as:
A. Output Tax
B. Input Tax
C. Collection Tax
D. Gross VAT

Answer 7

✅ Answer: A

Question 8

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 8

✅ Answer: C

Question 9

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 9

✅ Answer: B

Question 10

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 10

✅ Answer: C

Question 11

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 11

✅ Answer: C

Question 12

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 12

✅ Answer: B

Question 13

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 13

✅ Answer: C