Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE.1. The Philippine individual income tax is characterized by increasing tax rate as the tax baseincreases.2. Income tax is a tax on the net income or the ertire income realized in one taxable year lessdeductions allowed by law.3. An employee eaming purely compensation income is exempt from filing an income tax retumanly if his or herincome taxes were properly withheld by the employer.4. Social Security System (SSS) contributions are required from individuals who are employedin the public sector.5. Taxable income represents the amount of tax required to be paid to the BIR.6. Ms. A eams a gross salary of Pl0,000 during the month of May 2019. Ms. A's SSS,PhilHealth, and Pag-IBIG contributions for the month of May amounted to P2,000. Ms. A'staxable income is P8,000.7. Tax due is gross income mins the deductions allowed by law.8. Compensation income is income that is typically derived from self-employment.9. Mr. B is a non-resident citizen. He works abroad. Mr. B's income derived from his workabroad is ot taxable here in the Philippines.10. Mr. A is a resident citizen. All the income of Mr. A, whether eamed here in the Philippinesor abroad, is subject to taxation

(1) The given statement is true as there is progressive tax rate in Phillippines, income of resident…

is a tax on the net income or the ertire income reali s allowed by law. ee eaming purely compensation income is exempt fi s or her income taxes were properly withheld by the anity System (SSS) contributions are required from i

is a tax on the net income or the ertire income reali s allowed by law. ee eaming purely compensation income is exempt fi s or her income taxes were properly withheld by the anity System (SSS) contributions are required from i

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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