b. Income is recognized when incurred c Income is recognized when earned d. Income is recognized when declared 10. Under BIR regulations, income in long-term construction contracts is recognized through: a. Percentage of completion method only b. Completed contract method only c. Zero-profit method only d. Either of the above methods at the option of the taxpayer 11. Installment basis of reporting of income shall apply to casual sale of personal property upon compliance with all of the following requisites, except: a. The price exceeds P1,000 b. The property would not be included in the inventory of the taxpayer if on hand at the end of the taxable year c. The price will be paid in at least 3 installments d. Initial payments do no exceed 25% of the selling price 12. Sana is a resident citizen, Tzuyu is a non-resident citizen, while Mina is a resident alien. Who among them is subject to income tax on income derived from sources within and outside the Philippines? a. Sana only b. Sana and Tzuyu only c. Sana and Mina only d. Sana, Tzuyu, and Mina 13. Momo is a resident citizen, Nayeon is a non-resident citizen, while Dahyun is a resident alien. Who among them is subject to income tax only on income derived from sources outside the Philippines? a. Momo only b. Nayeon only c. Dahyun only d. Neither Momo, Nayeon, or Dahyun 14. Big Hit Corporation is a domestic corporation. Which of the following items of income is subject to tax? Gain from sale of personal property in the Philippines Gain from sale of personal property in South Korca 1. II. a. Ionly b. ll only c. Both I and II d. Neither I nor II 15. JYP Corporation is a resident foreign corporation. Which of the following item of income is not subject to tax? Income from Philippine operations I. Income from American operations II. a. I only b. ll only c. Both I and II d. Neither I nor II 16. The situs of service income is: a. Where the payment for services is made b. Where the service contract was perfected c. Where the services are performed d. Where the party availing of the services is located 17. The situs of income from sale of real property is determined by a. The place where the real property is located b. The place where the registered owner of the real property resides c. The place where the current possessor of the real property has citizenship d. The place where the deed of sale of real property was notarized 18. Statement 1: If an income is already subjected to creditable withholding tax, it is no longer reported as part of gross income subject to regular income tax Statement 2: If an income is already subjected to final withholding tax, it is reported as part of gross income at an amount net of the amount of tax withheld 3. Only statement 1 is true b. Only statement 7 is true c. Both statements are true d. Both statements are not true 19. Assuming the taxpayer follows the calendar year, the deadline for the filing of the second quarter Quarterly Remittance Return of Creditable Income Taxes Withheld (BIR Form No. 1601EQ) is: a. June 30 b. July 15 July 31 d. August 15 20. Interest income of resident citizens from short-term currency bank deposits is subject to a final withholding tax rate of 20%. As a result, a. Such interest income need not be declared as part of the gross income of the resident citizen taxpayer in his/her annual income tax return b. Such interest income should still be declared as part of the gross income of the resident citizen taxpayer in his/her annual income tax return, but in an amount net of the withholding tax Such interest income should still be declared as part of the gross income of the resident citizen taxpayer in his/her annual income tax return, but in an amount gross of the withholding tax d. Such interest income should still be declared as part of the gross income of the resident citizen taxpayer in his/her annual income tax return, but in an amount gross of the withholding tax, without a claim of income tax credit 21. Final withholding tax is: a. An approximation of the income tax due b. Deductible against gross income to compute for the taxable income c. The full and final payment of income tax due d. Creditable against income tax due to compute for the income tax payable 22. This is an attachment to the quarterly remittance returns which lists the name of income payees, their TINs, the amount of income paid segregated per month, and the total amount of taxes withheld, if any. a. Withholding Alphabetical List of Payees (WAP) b. Statutory Alphabetical Lis of Payees (SAP) Required Alphabetical List of Payees (RAP) d. Quarterly Alphabetical List of Payees (CAP) 23. When is the deadline for the filing of the ANNUAL Information Return on Income Taxes Withheld on Compensation (BIR Form No. 1604-C)? a. January 15 of the following year b. January 31 of the following year c. February 28/29 of the following year d. April 15 of the following year 24. Statement 1: In filing the BIR Form No. 1604 F, remittance will be simultaneously made by the withholding agent of the withholding taxes so declared Statement 2: In case of termination of employment, a Certificate of Creditable Tax Withheld at Source (BOR Form No. 2307) must be issued to the employee on the same day the last payment of wages is made. a. b. Only statement 1 is true Only statement 2 is true NTAC:3NS-20 NTAC:3NS-20