1. Which of the following entities is subject to the 3 % Percentage tax on Overseas Communications?

a. Government and diplomatic services c. New services

b. International organizations d. None of the foregoing
2. ABC, a domestic bank, authorized by the BSP to operate a FCDU had the following had the following income and
expenses:
A. Interest income from local currency transaction:
1. On Philippine peso deposit with another commercial bank P 200,000
2. On Philippine peso loans granted to domestic borrowers 12,000,000
B. Interest income from foreign currency transaction
1. On US dollar deposit in USA US$ 8,000
2. On US dollar deposit with a local bank authorized to operate
a FCDU 20,000
3. On US dollar loans granted to
a. Resident borrowers 400,000
b. Non-resident borrowers 100,000
C. Operating Expenses P 8,000,000
Rate of exchange : 1US$ = P50.00

The final income tax is_____________________

3. The risk that the assertion contains material misstatements that, when aggregated with misstatements in other
assertions could make the entire financial statements materially misstated is:
a. Individual audit risk b. Inherent risk c. Control risk d. Detection risk
4. In the cases of sale or conveyance of real property where one of the contracting parties is the government, the
documentary stamp tax shall be based on the:
a. FMV of the property c. Assessed value of the property
b. Zonal Value of the property d. Actual consideration of the sale
5. Which of the following articles is subject to specific tax?
a. Still wine b. Sparkling wine c. Beer d. Tuba