Transcript
EXAMINATION Northern CPAR: Business Law and Taxation – FINAL PRE-BOARD EXAMINATION
NORTHERN CPA REVIEW 4 Floor Pelizloy Centrum, Lower Session Road, Baguio City, City, Philippines Mobile Numbers SM!R" #$%$4&$'()& * +LB- #$%(%'%&%#4 -.mail n/par0yahoo1/om th
ATTY ATTY.. ANDRIX DOMINGO, DOMINGO, CPA CPA REX B. BANGGAWAN, BANGGAWAN, CPA, MBA BUSINESS LAW AND TAXATION FINAL PRE-BOARD EXAMINATION
1.
Corporatio Corporation n governed governed by special special laws aside from the requireme requirements nts specif specified ied under under the corpor corporati ation on laws. laws. In order order that that their their Articl Articles es of Incorporation may be approved or accepted, they must present before the Securities and Exchange Commission. a. A favorable recommendation from the inistry of !inance b. A copy of previous income tax return and a statement of assets, liabilities and networth. c. A favorable recommendation of the appropriate government agency in the effect that such article or amendment is in accordance with law. d. An un underta"ing to to ch change th the na name of of th the co corporation if if th there is already registered with the SEC a name similar to the name of the corporation
2.
I. If the the certi certifi fica cati tion on is obtai obtaine ned d not by the hold holder er but by others, the secondary parties are also discharged as when it is obtained by the drawer drawer even at the request of the payee or even though though the drawer is also the payee. II. #he certification of chec"s enables a person not well acquainted with each other to close promptly business transactions since the holder "nows that he can compel the drawee ban" to cash it. It thus avoids the delay and ris"s of receiving, counting, and passing from hand to hand large sums of money. a. $nly $nly the the %st Statement is #rue b. $nly $nly the the &nd Statement is #rue c. 'oth Statement Statements s are #rue d. 'oth Statement Statements s are !alse
3.
a. b. c. d.
ay contribute money, property or industry to a common fund 'oth general and limited partners (imited partners )eneral partners Capitalist partners
4.
*ex, a bright young star with a golden touch and +arryl, a pastor who lectures with a melodious voice entered into a universal partnership of all present property. #he common property of the partnership shall be a. All th the pr properties wh which be belonged to to ea each of of th the pa partners at at the time of the constitution of the partnership b. All th the pr properties wh which sh shall be belong to to ea each of of th the pa partners after the constitution of the partnership. c. All th the pr properties wh which be belonged to to ea each of of th the pa partners at at the time of the constitution of the partnership as well as properties which each may acquire thereafter. d. All th the pr properties wh which be belonged to to ea each of of th the pa partners at at the time of the constitution of the partnership as well as the profits which they may acquire therewith.
5.
#hree of the following enumerations are not authori-ed to issue no par value shares of stoc" . hich is the exception/ a. Insurance companies b. Industrial companies c. 0ublic utilities d. #rust Companies 1
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EXAMINATION Northern CPAR: Business Law and Taxation – FINAL PRE-BOARD EXAMINATION 6.
hich one of the following is not a requisite prescribed by law in order that a partnership may be held liable to a third party for the acts of one of its partners/ a. #he contract must be in the partnership name or of its account. b. #he partner binds the partnership by acquiescence for obligations he may have contracted in good faith. c. #he partner must act on behalf of the partnership d. #he partner must have the authority to bind the partnership.
7.
Any stoc"holder of a corporation shall have the right to dissent and demand payment of the fair value of his share1s in three of the following corporate acts. hich is the exception/ a. In ca c ase of o f an a ny am a mendment to t o th t he Ar A rticles of o f In I ncorporation which which has the effect effect of changi changing ng or restri restricti cting ng the rights rights of any stoc"holder or class of shares. b. In case of merger or consolidation. c. In ca case of of sale, lease, ex exchange, transfer, mo mortgage, pl pledge, or other other dispos dispositi ition on of all or substa substanti ntiall ally y all of the corpor corporate ate assets and property of the corporation. d. In case of incurring , creating or increasing bonded indebtedness.
8.
hich of the following is not a requisite to consider a person an accommodation party/ a. 2e must not be liable to a holder in due course. b. 2e must be a party to the instrument signing as ma"er, drawer, acceptor or endorser. c. 2e must not receive value therefore. d. 2e must sign for the purpose of lending his name or credit.
9.
A Capitalist partner is engaged for his own account in an operation which is of the "ind of business in which the partnership is engaged. Said partner can be a. Compelled to sell his interest in the partnership to the other capitalist partners. b. Compelled to t o dissolve or discontinue th t he op o peration of hi h is business. c. Compelled to to br bring to to th the co common fu funds of of th the pa partnership an any profits accruing to him from his transactions. d. +enied his share in the profits of the partnership.
10.
hich of the following instruments is not negotiable for the reason that the instrument is not payable at a determinable future time/ a. 3$n the death of 4, I promise to pay to the order of ' 0%,555. 6Sgd.7 A8 b. 3 $n $n or or be before $c $ctober 95 95, &5 &5%5, I pr promise to to pa pay ' or or hi his order 0 %,555. 6Sgd.7 A8 c. 3Sixty days after sight, I promise to pay to the order of ' 0 %,555. 6Sgd.7 A8 d. 3#en da days be before th the de death of of 4, 4, I promise to to pa pay ' or hi his order. 6Sgd.7 A8
11.
A, ' and and C secu secure red d a loan loan from from 4. #he #he prom promis isso sory ry note note whic which h evidences the obligation states 3 I promise to pay8 and signed by A, ' and C. #he obligation is a. :oint b. Solidary c. +ivisible d. Indivisible
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EXAMINATION Northern CPAR: Business Law and Taxation – FINAL PRE-BOARD EXAMINATION 12.
#he following except one are the rights of a holder in due course. hich is the exception/ a. 2e ma may en enforce pa payment of of th the in instrument fo for th the fu full am amount thereof against all parties liable thereon. b. 2e ma may re receive pa payment an and if if pa payment is is in in du due co course, th the instrument is discharged. c. 2e ho holds th the in instrument su sub;ect to to th the sa same de defense as as if if it it were non
EE Co. (td. was formed on $ctober &?, &5%5 by =ES as general partner and #$ and >EE as limited partners. In &5%%, =ES and #$ got married, did the marriage dissolve or put an end to the partnership/ a. =es, the partnership is dissolved by marriage because there is a change in equity among the partners. b. @o, because spouses can enter into a universal partnership. c. =es, be because sp spouses ca can en enter in into a pa particular pa partnership on be thereof. d. @o, the marriage did not dissolve the partnership.
14.
4, = and were partners. 4 is an industrial partner. +uring the first year of operation, the firm received a profit of 0 B5, 555. +uring the second year, the firm sustained a loss of 0 95, 555. In the Articles of 0artnership, it was agreed that the industrial partner would get %19 of the the prof profit it. . 'ut 'ut woul would d not not shar share e in the the loss losses es. . 2ow 2ow much much will will 4, the the industrial partner get/ a. 4 will get only 0 &5, 555 which is %19 of the profit of the %st year of operation. b. 4 wi will get on only 0 &5, 55 555 in in th the fi first ye year an and none in in th the second year. c. 4 will get only 0 %5, 555 which is %9 of the net profit d. 4 will share in the loss in the second year.
15.
A, ', and C, capitalist partners each contributed 0 95, 555, 0 &5, 555 and 0 %5, 555, respectively and +, the industrialist partner, contributed his services. Suppose 4, a customer, is the creditor of the firm to the amount of 0 %D5, 555. Can he recover the 0%D5,555/ a. 4 mu must su sue th the fi firm an and ge get 0 B5, 55 555 fr from al all th the pa partners including +, the industrial partner. 4. can still recover the balance of 0%&5, 555 from the four partners ;ointly. b. 4 can recover from the firm 0 B5, 555. 4 can still recover the balance of 0 %&5, 555 from the capitalist partners only. c. 4 ca can re recover fr from th the fi firm 0 B5 B 5, 55 555. 4 ca c an re recover th the balance of 0 %&5, 555 from any of their partners solidarily. d. 4 can recover from the firm 0 B5, 555 and consider the balance of 0 %&5, 555 as loss.
16.
#he authori-ed capital stoc" of a corporation is 0 ?55, 555 divided into %, 555 shares with a par value of 0 %55 each. At least 0 &?, 555 or &?5 shares of the authori-ed capital stoc" must be subscribed. #he &?5 shares were were subs subscr crib ibed ed by &? subs subscr crib iber ers. s. #o meet meet the the mini minimu mum m amou amount nt of subscription that must be paid a. It is is en enough th that &? & ? of of th t he to total su subscription is is pa paid, regardless of the amount paid by each individual. b. Each and every subscriber must always pay 0&?5 which is &? of their individual subscription. c. Seven of of th the su subscribers pa paid 0 B, B, &? &?5 an and th the re rest of of th the subscribers did not ma"e any payment. d. @one of these.
17.
hich of the following is not a requisite for the existence of a de facto corporation/ a. #he ex e xistence of o f a valid st s tatute un u nder wh w hich a corporation with some of the purposes in question can be formed. 3
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EXAMINATION Northern CPAR: Business Law and Taxation – FINAL PRE-BOARD EXAMINATION
b.
An at attempt in in go good fa faith to to fo form a co corporation ac according to to the requirements of law. c. #he organi-ation is not registered with Securities and Exchange Commission. d. As us user of of co corporate po powers, th there mu must be be a tr transaction of of business in some ways as if it were a corporation.
18.
Stoc" Stoc" corpor corporati ations ons are prohib prohibite ited d from from retain retaining ing surplu surplus s profit profits s in exce excess ss of %55 %55 of thei their r paid paid capi capita tal l stoc stoc". ". #hre #hree e of the the foll follow owin ing g enumerations are exceptions. hich does not belong to the exception/ a. here there is pension plan as agreed in Collective 'argaining Agreement. b. hen ;ustified by b y d ef efinite co c orporate e xp xpansion pr p ro;ects or or programs approved by the board of directors. c. hen th t he co c orporation is i s pr prohibited un u nder an a ny lo l oan ag a greement with any financial institution or creditor whether local or foreign from declaring dividends without its consent. d. hen it it ca can be be cl clearly sh shown th that su such re retention is is ne necessary under the special circumstances obtaining in the corporation, such as providing for probable contingencies.
19.
hich of the following instrument is negotiable/ a. 30ay to ' or order, 0 %,555 and reimburse yourself out of my money in your hands.8 6Sgd 7A 6to C7 b. 3 I hereby au authori-e yo you to to pa pay 0% 0%,555 on on ou our ac account to to th the order of 4.8 6Sgd.7 A c. 3 I pr promise to to pa pay 4 or or or order 0 %, %,555 on on or or be before $c $ctober &?.8 6Sgd.7 A d. 30lease le let th the be bearer ha have 0% 0%, 55 555 an and pl place to to my my ac account and you will oblige.8 6Sgd.7 A
20.
Every Every person person negoti negotiati ating ng an instru instrumen ment t by delive delivery ry or by a qualif qualified ied endo endors rsem emen ent t warr warran ants ts the the foll follow owin ing. g. hic hich h does does not not belo belong ng to the the warranties/ a. #hat the instrument is genuine in all respects what it purports to be. b. #hat he he has go good ti title to to it it an and th that al all pr prior pa parties ha has capacity to contract. c. #hat the person negotiating has no liability to a third person d. #hat he he ha has no no "n "nowledge of of an any fa fact wh which wo would im impair th the validity of the instrument or render it valueless.
21.
r. 'angelly, realty dealer, sold the following properties during &5%5 0roperties sold 0rincipal residence Stoc"s sold directly to buyer 0ersonal car $ffice equipments 'onds, held as investment
2olding period (ongalinga r. and rs. Cuaresma has salaries from employment of 0%?5,555 and 0%55,555, respectively. rs. Cuaresma paid 09,555 health insurance for the family. Compute the taxable income of r. and rs. Cuaresma, respectively. a. 0K?,555 0?5,555 c. 0?5,555 0JK,B55 b. 0?5,555 0JK,B55 d. 0&?,555 0?5,555
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EXAMINATION Northern CPAR: Business Law and Taxation – FINAL PRE-BOARD EXAMINATION 48.
Intrepid, Inc. showed the following computation of its taxable income in &5%5. )ross income (ess $t $ther deductions from gr gross income @et operating loss carry over #axable income
0J,555,555 &,555,555 %,555,555 0%,555,555
#his was the first time Intrepid, Inc. reports taxable income since its inception in &55J. Intrepid, Inc. paid 0&55,555 CI# in prior years. +uring the current year, 0&?,555 was withheld by clients from Intrepids gross income.
Compute the &5%5 income tax payable of Intrepid, Inc. a. 0955,555 c. 0%55,555 b. 0&K? 0&K?,5 ,555 55 d. 0K?,555 49.
Atlas, Inc. reports the following income in &5%5 #axable income @$(C$ claimed Estimated &5%5 income tax paid Capital gains, net of tax 0assive income, net of tax Exclusions from gross income Exempt income +ividends declared *easonable appropriation
0J55,555 B55,555 %55,555 ?5,555 %D5,555 %&5,555 &55,555 J55,555 955,555
If Atlas, Inc. was assessed for improperly accumulating profit in &5%5, how much is the improperly accumulated earnings tax/ a. 0%5?,555 c. 0 K?,555 b. 0%59,555 d. 0 K9,555 50.
All of these are exempt from transfer tax, except/ a. #ransfer of the usufruct in the owner owner of the na"ed title b. 0roceeds of group insurance insurance received by heirs of of the decedent decedent c. )eneral renunciation renunciation of share share in the con;ugal property property by the surviving spouse d. #ransfer #ransfer under under special special power of appointme appointment nt
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