MULTIPLE CHOICE PROBLEM PART 1

1. Free company, a resident business renders services to

Mr. Erlwin, a resident person who is not engaged in
business.
Which of the following is subject to consumption tax?
a. Free company
b. Mr. Erlwin
c. Both A and B
d. Neither A nor B
2. Baliwag Company , a non resident business,
purchased P200,000 from Cauayan company, a resident
business. Which will pay the consumption tax on this
transaction?
a. Cauayan Company
b. Baliwag company
c. Both A and B
d. Neither A nor B
3. Heidenberg corporation , a resident business ,
purchased P 100,000 goods from Kiwi Company , a non
resident business. Which will pay consumption tax on this
transaction?
a. Heidenberg company
b. Kiwi Corporation

c. Both A and B
d. Neither A nor B
4. Mr. Cedric, an employee sold his residential lot to Mrs.
Corneto a real property dealer . Which is subject to
consumption tax with respect to this transaction?
a. Mr. Cedric
b. Mrs. Corneto
c. A and B
d. Neither A nor B
5. Mr. Bangus made a casual sale involving a car to Mrs.
Tulya, a resident buyer. Mr. Bangus is not a car dealer .
Which is subject to consumption tax?
a. Mr Bangus
b. Mrs. Tulya
c. Both Mr Bangus and Mrs Tulya.
d. Neither Mr. Bangus nor Mrs.Tulya
6. Mr. Cavite produces an excisable article for the sale in
the Philippine market. Which is incorrect with respect to
Mr. Cavites business taxation?
a. Mr. Cavite subject to either VAT or percentage tax
b. Mr . Cavite pays excise tax in addition to VAT or
percentage tax

c. Mr. Cavite pays excise tax in addition to VAT and

percentage tax.
d. Mr. Cavite will pay excise tax without regard to whether
he is a VAT or non VAT taxpayer.
7. A person engaged in business is subject to 3%
business tax. He has inventories of goods in his
possession which cost 77,600 which he intends to sell to
earn mark up of 25% of cost net of the 3% business tax?
a.P100,000
b.P103,000
c.P 97,000
d. P 110, 000
8. A business wants to make P10,000 profit from the sale
of an inventory costing P 30,000 . The business is subject
to 3% percentage tax.
At what amount shall the business invoice the sale?
a. P 41,237
b. P 41,200
c. P 40,000
d.P 38,800
9. A person who imports goods or properties will more
likely to pay

a. a 3% percentage tax on the importation

b. a 12% VAT on the importation
c. either 3% or 12% tax on the importation
d. no consumption tax
10. A person who is not regularly engaged trade or
business sells made a casual sale of property for P
100,000. What will be invoice price of the sale?
a.100,000
b.103,000
c. 112,000
d. Either B or C
11. Alison is regularly engaged in the sales of goods. He
will pay
a. P 0
b. P 3,000
c. P 6,180
d P 12,000
12. Mr. Ventura is subject to 3% percentage tax. He made
total collection of P206,000 during a month and paid
P103,000 in purchases. Compute his percentage tax.
a. P 0

b. P 3,000
c. P 6,180
d. P 12,000
13. A business taxpayer purchased P120,000 from non
residents and sold goods worth P140 000 for 180,000
What is the concept of value added for VAT purposes?
a. 200,000
b. 140,000
c. 80 000
d. 60 000
14. In the immediately preceding problem, what is the
basis of percentage tax?
a. 200 000
b. 140 000
c. 120 000
d. 180 000
15. Assuming the same data in the above problem , what
is the basis of the VAT om importation?
a. 200 000
b. 140 000
c. 120 000

d. 80 000
16. Mr. Coroneti imported P 300 000 equipment for
business use and a P 1 200 000 car for personal use.
What is the amount subject to the VAT on importation?
a .0
b .300 000
c .1 200 000
d. 1 500 000
MULTIPLE CHOICE PART 2
BASIC CASE 1
1. A business taxpayer had the following purchase and
receipts:
Import of goods or services

P 190 000

Domestic purchase of goods or services P 100 000

Domestic sales of goods and services
Export Sales of goods or services

P150 000
P 50 000

Determine the total amout of which will be subject to

consumption tax to the business tax payer.
a. 500 000
b. 400 000
c. 350 000

d. 340 000
2. In the immediately preceding problem , determine the
amount subject to consumption tax if the tax payer is not
engaged in business/
a. 490 000
b. 390 000
c. 200 000
d. 190 000
Basic Case 2
3. A VAT registered taxpayer recorded the following
sales and purchases during the month
Sales

P 300 000

Purchases P 200 000

All amounts above are exclusive of any VAT.
What would be the Output VAT?
a. 48 000
b. 36 000
c. 24 000
d. 12 000
4. What is the Input VAT ?

a. 48 000
b. 36 000
c. 24 000
d. 12 000
5. What is the VAT payable ?
a. 48 000
b. 36 000
c. 24 000
d. 12 000
6. Assuming the taxpayer is a non vat taxpayer paying
3% percentage tax, the percentage tax shall be
a. 12 000
b. 9 000
c. 6,000
d. 3,000
Basic Case 3
A business taxpayer recorded the following transactions
during the month:
Philippines

Abroad Total

Sales

350 000

200 000 550 000

Purchases

150 000

100 000 250 000

TOTAL

500 000

300 000 800 000

Assuming that taxpayer is a Vat registered taxpayer

7. Compute the Output VAT.
a. 0
b. 24 000
c. 36 000
d. 42 000
8. Compute the VAT on importation .
a. 0
b. 12 000
c. 18 000
d. 32 000
Assuming the taxpayer is a non VAT taxpayer
9. Compute the percentage tax.
a. 0
b. 6000
c. 9000
d. 10 500
10. Compute the VAT on importation.
a. 0
b. 3000

c. 12 000
d. 18 000
BASIC CASE 4
Sandigan Company a VAT registered taxpayer , purchased
400 000 worth of goods and sold at the same for P 800
000
11. Assuming that the business operation of Sandigan
company is limited to Philippine residents , what is the
total business tax it will report on its sales?
a. 96 000
b. 48 000
c. 24 000
d. 0
12. Assuming that the purchases were import and the
sales were exports compute the business tax and total
consumption tax respectively.
a P 96 000 : P 144 000
b. P 24 000 : P 144 000
c. P 24 000 : P 72 000
d. P 0

: 48 000