1. One of the characteristics of internal revenue tax is that they are

a.

Criminal in nature

c.

Political in nature

b.

Penal in nature

d.

Generally prospective in application

1. In case of conflict between tax laws and generally accepted accounting principles (GAAP)

a.

Both tax laws and GAAP shall be enforced

b.

GAAP shall prevail over tax laws

c.

Tax laws shall prevail over GAAP

d.

The issue shall be resolved by the court

1. Which of the following has no power of taxation?

a.

provinces

c.

barangays

b.

cities

d.

barrios

1. "Schedular system of income taxation" means

a.

All types of income are together to arrive at gross income

b.

Separate graduated rates are imposed on different types of income

c.

Capital gains are excluded in determining gross income

d.

Compensation income and business/professional are added together in arriving at grass income