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Deduction From Gross Income Quizzer

The document is a quiz about deductions from gross income for tax purposes. It asks multiple choice questions about which expenses are allowable deductions, such as real property tax and bad debt expenses. It also asks about deduction limits and time periods, for example that net operating losses can be carried over for deduction in the next two years. Entertainment expenses are limited to 1% of gross service revenues. Local business taxes are deductible but capital gains taxes are not.

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3K views2 pages

Deduction From Gross Income Quizzer

The document is a quiz about deductions from gross income for tax purposes. It asks multiple choice questions about which expenses are allowable deductions, such as real property tax and bad debt expenses. It also asks about deduction limits and time periods, for example that net operating losses can be carried over for deduction in the next two years. Entertainment expenses are limited to 1% of gross service revenues. Local business taxes are deductible but capital gains taxes are not.

Uploaded by

Academe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Deduction from Gross Income

Quizzer

1. Which of the following tax is an allowable deduction from gross income of


a VAT-Registered Taxpayer?
A. Stock transaction tax
B. Real property tax
C. Value added tax
D. Estate tax

2. Which type of income tax payer may still claim cost of sales as allowable
deduction aside from the 40% Optional Standard Deductions?
a. Individual income taxpayer
b. Corporate income taxpayer
c. Both a and b
d. Neither a nor b

3. What rule or principle is applied to determine the income taxability of tax


refund or recovery of previously written off bad debts?
a. Tax benefit rule
b. Tax credit rule
c. Tax avoidance rule
d. Tax dodging rule

4. When shall bad debt expense be claimed as allowable deduction from


gross income?
a. On the taxable year the bad debt expense is recognized
b. On the taxable year the accounts receivable is recorded
c. On the taxable year the bad debt is actually written off
d. On the taxable year the bad debt is estimated to be uncollectible

5. For how many years may the net operating carry-over be claimed as
deduction from gross income from the date it is reported?
a. For the next two (2) consecutive taxable years immediately
following the year of such loss
b. For the next four (4) consecutive taxable years immediately
following the year of such loss
c. For the next five (5) consecutive taxable years immediately
following the year of such loss
d. For the next three (3) consecutive taxable years immediately
following the year of such loss
6. Up to what extent may wagering losses be claim as deductions?
a. Up to 100% of wagering gains
b. Up to 25% of wagering gains
c. Up to 50% of wagering gains
d. Up to 75% of wagering gains

7. In case of charitable donations subject to limitations, up to what extent


may an individual claim deductions?
a. 10% of the taxpayer's taxable income derived from trade, business
or profession as computed without the benefit the charitable
donations
b. 15% of the taxpayer's taxable income derived from trade, business
or profession as computed without the benefit the charitable
donations
c. 5% of the taxpayer's taxable income derived from trade,
business or profession as computed without the benefit the
charitable donations
d. 20% of the taxpayer's taxable income derived from trade, business
or profession as computed without the benefit the charitable
donations

8. Which of the following may be claimed as allowable deductions by a


businessman?
a. Bribed money and illegal kickbacks
b. Immoral expenses
c. Personal and living expenses
d. None of the above

9. What is the maximum entertainment and recreational expenses that may


be claimed by provider of services?
a. 2% of gross service revenues
b. 0.5% of gross sales
c. 1% of gross service revenues
d. 1.5% of gross sales

10. Which of the following taxes is not allowed to be claimed as


allowable deductions from gross income?
a. Capital gains tax
b. Documentary stamp tax
c. Other percentage tax
d. Local business tax

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