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  • Multiple Choice INTX

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    Sophia Keratin
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    The document contains a 10 question multiple choice quiz about the theory of income tax. The questions cover topics such as what constitutes gross income, what items are taxable income, what is not subject to income tax, when the consideration received from the sale of goods or services represents a return on or return of capital, and why income is subject to taxation. The correct answers are not provided.

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    INCOME TAX

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    The document contains a 10 question multiple choice quiz about the theory of income tax. The questions cover topics such as what constitutes gross income, what items are taxable income, what is not subject to income tax, when the consideration received from the sale of goods or services represents a return on or return of capital, and why income is subject to taxation. The correct answers are not provided.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    171 views1 page

    Multiple Choice INTX

    Uploaded by

    Sophia Keratin
    The document contains a 10 question multiple choice quiz about the theory of income tax. The questions cover topics such as what constitutes gross income, what items are taxable income, what is not subject to income tax, when the consideration received from the sale of goods or services represents a return on or return of capital, and why income is subject to taxation. The correct answers are not provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Multiple Choice - Theory: Part 1

    1. Which is not a requisite of gross income?


    a) Return on capital c) Exempted by law
    b) Realized benefit d) Not exempted by law

    2. Which is taxable item of income?


    a) Increase in numbers of a herd of animals
    b) Compensation for personal injuries
    c) Moral damages
    d) Interest on moral damages

    3. Which is not subject to income tax?


    a) Donation c) Sales of goods
    b) Sale of service d) Barter of goods

    4. The total consideration received from the sale of service constitute


    a) Return on capital c) Either a or b
    b) Return of capital d) Both a and b

    5. When paid for, which of the following items may involve a return on capital?
    a) House and lot c) Dignity
    b) Life d) Health
    6. The total consideration received from the sale of goods at a gain represents
    a) Return on capital c) Either a or b
    b) Return of capital d) Both a and b

    7. The total consideration received from the sale of goods at a loss represents
    a) Return on capital c) Either a or b
    b) Return of capital d) Both a and b

    8. Why is income subject to taxation?


    a) Income is the most prevalent source of a taxpayer’s wealth.
    b) Income is the best measure of taxpayer’s ability to pay tax.
    c) Rich people tend to have more income than poor.
    d) Any of these.

    9. Which is not an item of gross income because of the absence of an undertaking from the taxpayer?
    a) Proceeds of a life insurance policy
    b) Forgiveness of indebtedness as an act of gratuity
    c) Revaluation surplus on properties
    d) Service fees

    10. Which is subject to income tax?


    a) Proceeds of life insurance policy received by the family of the insured
    b) Excess of proceeds over the premiums paid received by the taxpayer
    c) Life insurance proceeds received by the corporation from the insurance of a deceased officer
    d) None of these

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