A sole proprietor business acquired a vehicle for use in business during the year. The business is not allowed to deduct the acquisition cost of the vehicle for taxation purposes but is allowed to deduct the depreciation expense therefrom.
A. TRUE
B. FALSE

Passive income can be broadly defined as income earned without actively working for it. Therefore, the allowances you are receiving from Papa and Mama are considered passive income that are subject to income tax, according to the law.
A. TRUE
B. FALSE

The "take-home pay" of an employee is already net of tax.
A. TRUE
B. FALSE

Mr. B is a non-resident citizen. He works abroad. Mr. B's income derived from his work abroad is not taxable here in the Philippines.
A. TRUE
B. FALSE

Taxable income represents the amount of tax required to be paid to the BIR
A. TRUE
B. FALSE

An employee earning purely compensation income is exempt from filing an income tax return if his or her income taxes were properly withheld by the employer
A. TRUE
B. FALSE

Cost of sales is computed as "beginning inventory + net purchases - ending inventory"
A. TRUE
B. FALSE

Social Security System (SSS) contributions are required from individuals who are employed in the public sector (i.e., government)
A. TRUE
B. FALSE

Gross income from a trading/merchandising business is computed as gross sales less cost of sales
A. TRUE
B. FALSE

Compensation income is income that is typically derived from self-employment.
A. TRUE
B. FALSE

Value-Added Tax (VAT) is imposed on any person who, in the ordinary course of business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports goods.
A. TRUE
B. FALSE