BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 78
Chapter 11: VAT ON SALE OF SERVICES
1. False Not all because there are services that are rendered in the Philippines yet subject
BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 64
Chapter 9: VALUE-ADDED TAX
2. False the buyer is legally liable for the payment of VAT on importation of goods or services.
BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 11
Chapter 3: GROSS ESTATE
2. False include all properties within and outside the Philippines.
4. False intangible perso
BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 19
Chapter 4: DEDUCTIONS FROM GROSS ESTATE
DEDUCTIONS FROM GROSS ESTATE
1. False could not be claimed as claim against the estate.
3. False in
BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 52
Chapter 7: BUSINESS TAXES
2. False this is a casual sale not a business.
5. False not business because cont
BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 40
Chapter 6: DONORS TAX
1. False during the lifetime of the donor.
4. False there is no consideration in donation.
BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS)
Chapter 2: TRANSFER TAXES AND
TRANSFER TAXES AND BASIC SUCCESSION
1. False - gratuitous
2. False donation mortis-causa is subject
The Project Gutenberg EBook of The Prince, by Nicolo Machiavelli
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almost no restrictions whatsoever. You may copy it, give it away or
re-use it under the terms of the Project Gutenberg Licens
A bond that makes no coupon payments and is initially priced at a deep discount is called a _
E. zero coupon
An asset characterized by cash flows that increase at a constant rat
The person generally directly responsible for overseeing the tax management, cost accounting, financial
accounting, and information system functions is the:
D. chairman of the board.
E. chief ex
The stock valuation model that determines the current stock price by dividing the next annual dividend
amount by the excess of the discount rate less the dividend growth rate is called the _ model.
A. zero growth
B. dividend growth
An annuity stream of cash flow payments is a set of:
A. level cash flows occurring each time period for a fixed length of time.
B. level cash flows occurring each time period forever.
C. increasing cash flows occurring each time period
An analysis of what happens to the estimate of the net present value when you examine a number of
different likely situations is called _ analysis.
An analysis of
The weighted average of the firm's costs of equity, preferred stock, and after tax debt is the:
A. reward to risk ratio for the firm.
B. expected capital gains yield for the stock.
C. expected capital gains yield for the firm.
The excess return required from a risky asset over that required from a risk-free asset is called the:
A. risk premium.
B. geometric premium.
C. excess return.
D. average return.
The average squared difference between th
In the equation R = + U, the three symbols stand for:
A. average return, expected return, and unexpected return.
B. required return, expected return, and unbiased return.
C. actual total return, expected return, and unexpected return.
An efficient capital market is one in which:
A. brokerage commissions are zero.
B. taxes are irrelevant.
C. securities always offer a positive rate of return to investors.
D. security prices are guaranteed by the U.S. Securities and Exc
The book capital of a corporation is determined by:
A. the sum of the capital in excess of par and the retained earnings.
B. the par value of preferred stock.
C. the sum of the treasury stock and the preferred stock.
D. the number of sh
In a lease arrangement, the owner of the asset is:
A. the lesser.
B. the lessee.
C. the lessor.
D. the leaser.
E. None of these.
In a lease arrangement, the user of the asset is:
A. the lesser.
B. the lessee.
C. the lessor.
D. the le
A financial contract that gives its owner the right, but not the obligation, to buy or sell a specified asset at
an agreed-upon price on or before a given future date is called a(n) _ contract.
An equity issue sold directly to the public is called:
A. a rights offer.
B. a general cash offer.
C. a restricted placement.
D. a fully funded sales.
E. a standard call issue.
An equity issue sold to the firm's existing stockholders
The flow-to-equity (FTE) approach in capital budgeting is defined to be the:
A. discounting all cash flows from a project at the overall cost of capital.
B. scale enhancing discount process.
C. discounting of the levered cash flows to t
The use of personal borrowing to change the overall amount of financial leverage to which an individual
is exposed is called:
A. homemade leverage.
B. dividend recapture.
C. the weighted average cost of capital.
D. private debt placemen
Payments made out of a firm's earnings to its owners in the form of cash or stock are called:
C. share repurchases.
E. stock splits.
Payments made by a firm to its owners from sour
A security issued in the United States that represents shares of a foreign stock and allows that stock to be
traded in the United States is called a(n):
A. American Depository Receipt.
B. Yankee bond.
C. Yankee stock.
The complete absorption of one company by another, wherein the acquiring firm retains its identity and
the acquired firm ceases to exist as a separate entity, is called a:
C. tender offer.
A derivative is a financial instrument whose value is determined by:
A. a regulatory body such as the FTC.
B. a primitive or underlying asset.
C. hedging a risk.
D. hedging a speculation.
E. None of these.
Derivatives can be used to
Financial managers broaden their definition of cash to include:
A. currency, bank deposits, stocks and bonds.
B. currency, checking deposits, undeposited checks, and bonds.
C. cash, bonds, bank deposits and short-term marketable securit
Selling goods and services on credit is:
A. an investment in a customer.
B. never necessary unless customers cannot pay for the goods.
C. a decision independent of customers.
D. permissible if your bank lends the money.
E. None of these