The following statements are correct, except: a. The amount of percentage tax is based on the gross receipts. b. The amount of gross receipts is derived by deducting the cost of services rendered from the service revenue. c. Receivables, although treated as income under the accrual concept, do not form part of gross receipts. d.Percentage tax is generally imposed on services rendered.

How would you differentiate items that are exempted from gross income and items deductible from gross income?

GST/HST differs from other sales taxes in that - Select one: a. it applies at all levels of sales b. the same rate applies to all goods and services sold c. all goods and services have GST/HST applied d. GST/HST is applied in the same way as other sales taxes

Classify the following items that may cause discrepancy between accounting profit and taxable income, into the following types of differences. Also, provide an explenation why that is their classification. A. Non-deductible expenses B. Non-taxable revenues C. Deductible temporary difference D. Taxable temporary difference Interest earned on investments in tax-exempt government securities. Interest earned on deposits with bank. Excess of profit earned over the profit reported under the installment method for income tax purposes.

Statement 1: Excises tax, custom duties and the VAT on importation is similarly collectible at the point of importation. Statement 2: Excise tax and the VAT on importation are similarly imposed upon landed costs. Which is false?  Neither statement Both Statement Statement 1 Statement 2

14. As distinguished from deductions, tax credit is a. A deduction from gross sales/receipts b. A deduction from gross income c. A deduction on tax due d. A deduction from other income

A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross income? c. reduce tax owed after tax has been determined?). Another purpose of an adjustment to income is to (option: a. help determine adjusted gross income? b. calculate taxable income after agi has been determined? c. be subtracted after agi to help determine taxable income?)

How do I calculate the amount of sales tax that is included in total receipts?

A taxable income always results when a. none of the choices. b. revenues exceed the cost of goods sold. c. the gross margin exceeds operating expenses. d. revenues exceed operating expenses.

Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.