Question 1

Which tax raises the most revenue for the federal government?

Accepted Answer

A)  Corporate income tax 
B)  Individual income tax 
C)  Excise taxes 
D)  Transfer taxes 
A)  Corporate income tax 
B)  Individual income tax 
C)  Excise taxes 
D)  Transfer taxes B

Question 2

Which of the following statements concerning judicial authority is false?

Accepted Answer

A)  Appellate court decisions have more authority than trial court decisions. 
B)  Supreme Court decisions have more authority than appellate court decisions. 
C)  Supreme Court decisions are the equivalent of law. 
D)  None of these statements are false. 
A)  Appellate court decisions have more authority than trial court decisions. 
B)  Supreme Court decisions have more authority than appellate court decisions. 
C)  Supreme Court decisions are the equivalent of law. 
D)  None of these statements are false. D

Question 3

The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.

Accepted Answer

A) True 
 B)False  True

Question 4

The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms. Lacey, by $45. Who bears the incidence of the property tax increase?

Accepted Answer

A)  Mr. Janey 
B)  Ms. Lacey 
C)  Both Mr. Janey and Ms. Lacey 
D)  Neither Mr. Janey nor Ms. Lacey 
A)  Mr. Janey 
B)  Ms. Lacey 
C)  Both Mr. Janey and Ms. Lacey 
D)  Neither Mr. Janey nor Ms. Lacey

Question 5

Which of the following is an example of a transaction-based tax?

Accepted Answer

A)  A tax on net business income 
B)  An excise tax 
C)  An estate tax on the transfer of assets at death 
D)  Both an excise tax and an estate tax on the transfer of assets at death. 
A)  A tax on net business income 
B)  An excise tax 
C)  An estate tax on the transfer of assets at death 
D)  Both an excise tax and an estate tax on the transfer of assets at death.

Question 6

Which of the following federal taxes is earmarked for a specific purpose?

Accepted Answer

A)  Corporate income tax 
B)  Employment taxes 
C)  Unemployment taxes 
D)  Both employment taxes and unemployment taxes are earmarked taxes. 
A)  Corporate income tax 
B)  Employment taxes 
C)  Unemployment taxes 
D)  Both employment taxes and unemployment taxes are earmarked taxes.

Question 7

Acme Inc.'s federal income tax increased by $100,000 this year. As a result, Acme reduced the annual dividend paid on its common stock by $100,000. Who bears the incidence of the corporate tax increase?

Accepted Answer

A)  Acme Inc. 
B)  Acme's customers 
C)  Acme's employees 
D)  Acme's shareholders 
A)  Acme Inc. 
B)  Acme's customers 
C)  Acme's employees 
D)  Acme's shareholders

Question 8

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is/are not a primary source of authority for the tax law?

Accepted Answer

A)  A revenue ruling published by the Internal Revenue Service 
B)  Section 162 of the Internal Revenue Code 
C)  Treasury Reg. §1.351-2 
D)  All of these choices are primary sources of authority 
A)  A revenue ruling published by the Internal Revenue Service 
B)  Section 162 of the Internal Revenue Code 
C)  Treasury Reg. §1.351-2 
D)  All of these choices are primary sources of authority

Question 10

Under U.S. tax law, corporations are entities separate and distinct from their shareholders.

Accepted Answer

A) True 
 B)False

Question 11

The incidence of a state sales tax levied on the purchase of retail goods is:

Accepted Answer

A)  Borne by the ultimate purchaser of the goods. 
B)  Borne by the seller who must collect and remit the tax. 
C)  Borne by the government that levies the tax. 
D)  None of these choices are correct. 
A)  Borne by the ultimate purchaser of the goods. 
B)  Borne by the seller who must collect and remit the tax. 
C)  Borne by the government that levies the tax. 
D)  None of these choices are correct.

Question 12

Acme Inc.'s property taxes increased by $19,000 this year. As a result, Acme eliminated $19,000 from its budget for the employee Christmas party. Who bears the incidence of the corporate tax increase?

Accepted Answer

A)  Acme Inc. 
B)  Acme's customers. 
C)  Acme's employees. 
D)  Acme's shareholders. 
A)  Acme Inc. 
B)  Acme's customers. 
C)  Acme's employees. 
D)  Acme's shareholders.

Question 13

Which of the following federal taxes is not earmarked for a specific purpose?

Accepted Answer

A)  Employment taxes 
B)  Unemployment taxes 
C)  Transfer taxes 
D)  All of these choices are earmarked taxes. 
A)  Employment taxes 
B)  Unemployment taxes 
C)  Transfer taxes 
D)  All of these choices are earmarked taxes.

Question 14

Which of the following characterizes a good tax base?

Accepted Answer

A)  The base can be easily expressed in monetary terms. 
B)  Taxpayers cannot easily avoid or conceal the base. 
C)  Taxpayers cannot easily move the base from one jurisdiction to another. 
D)  All of these choices characterize a good tax base. 
A)  The base can be easily expressed in monetary terms. 
B)  Taxpayers cannot easily avoid or conceal the base. 
C)  Taxpayers cannot easily move the base from one jurisdiction to another. 
D)  All of these choices characterize a good tax base.

Question 15

Which of the following taxes is generally the most significant source of revenue for local governments?

Accepted Answer

A)  Real property tax 
B)  Employment tax 
C)  Income tax 
D)  None of these choices are correct 
A)  Real property tax 
B)  Employment tax 
C)  Income tax 
D)  None of these choices are correct

Question 16

The U.S. government does not have jurisdiction to tax U.S. citizens who are permanent residents of another country.

Accepted Answer

A) True 
 B)False

Question 17

Revenue rulings and revenue procedures are written by:

Accepted Answer

A)  The Internal Revenue Service 
B)  The Department of the Treasury 
C)  The United States Congress 
D)  The Supreme Court 
A)  The Internal Revenue Service 
B)  The Department of the Treasury 
C)  The United States Congress 
D)  The Supreme Court

Question 18

Which of the following does not characterize federal transfer taxes?

Accepted Answer

A)  The tax is imposed on the value of wealth transferred by an individual as a gift. 
B)  The tax is imposed on the value of wealth transferred because of the death of an individual. 
C)  The tax is imposed on the value of wealth transferred by an individual to charity. 
D)  All of these choices are characterize federal transfer taxes. 
A)  The tax is imposed on the value of wealth transferred by an individual as a gift. 
B)  The tax is imposed on the value of wealth transferred because of the death of an individual. 
C)  The tax is imposed on the value of wealth transferred by an individual to charity. 
D)  All of these choices are characterize federal transfer taxes.

Question 19

Which of the following sources of tax law carries the least authority?

Accepted Answer

A)  Revenue ruling 
B)  Treasury regulation 
C)  Section 736 of the Internal Revenue Code 
D)  The three sources of tax law have equal authority
87) Ms. Penser resides in the city of Lanock, Tennessee. She owns 100% of the stock of PSW Inc., which is incorporated under Tennessee law and conducts business in six different local jurisdictions in Tennessee.How many taxpayers are identified in the above statement of facts?Identify the governments with jurisdiction to tax each of these taxpayers. 
A)  Revenue ruling 
B)  Treasury regulation 
C)  Section 736 of the Internal Revenue Code 
D)  The three sources of tax law have equal authority
87) Ms. Penser resides in the city of Lanock, Tennessee. She owns 100% of the stock of PSW Inc., which is incorporated under Tennessee law and conducts business in six different local jurisdictions in Tennessee.How many taxpayers are identified in the above statement of facts?Identify the governments with jurisdiction to tax each of these taxpayers.

Question 20

The city of Mayfield charges individuals convicted of DWI (driving while intoxicated) $500 for the first conviction and $2,000 for any subsequent conviction. These charges are an example of a(n):

Accepted Answer

A)  User's fee 
B)  Transaction-based tax 
C)  Activity-based tax 
D)  Government penalty 
A)  User's fee 
B)  Transaction-based tax 
C)  Activity-based tax 
D)  Government penalty

Which tax raises the most revenue for the federal government?

Which of the following statements concerning judicial authority is false?

The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.

The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms. Lacey, by $45. Who bears the incidence of the property tax increase?

Which of the following is an example of a transaction-based tax?

Which of the following federal taxes is earmarked for a specific purpose?

Acme Inc.'s federal income tax increased by $100,000 this year. As a result, Acme reduced the annual dividend paid on its common stock by $100,000. Who bears the incidence of the corporate tax increase?

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

Which of the following is/are not a primary source of authority for the tax law?

Under U.S. tax law, corporations are entities separate and distinct from their shareholders.

The incidence of a state sales tax levied on the purchase of retail goods is:

Acme Inc.'s property taxes increased by $19,000 this year. As a result, Acme eliminated $19,000 from its budget for the employee Christmas party. Who bears the incidence of the corporate tax increase?

Which of the following federal taxes is not earmarked for a specific purpose?

Which of the following characterizes a good tax base?

Which of the following taxes is generally the most significant source of revenue for local governments?

The U.S. government does not have jurisdiction to tax U.S. citizens who are permanent residents of another country.

Revenue rulings and revenue procedures are written by:

Which of the following does not characterize federal transfer taxes?

Which of the following sources of tax law carries the least authority?

The city of Mayfield charges individuals convicted of DWI (driving while intoxicated) $500 for the first conviction and $2,000 for any subsequent conviction. These charges are an example of a(n):

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

Exam 1: Taxes and Taxing Jurisdictions

Which tax raises the most revenue for the federal government?

Which of the following statements concerning judicial authority is false?

The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.

The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms. Lacey, by $45. Who bears the incidence of the property tax increase?

Which of the following is an example of a transaction-based tax?

Which of the following federal taxes is earmarked for a specific purpose?

Acme Inc.'s federal income tax increased by $100,000 this year. As a result, Acme reduced the annual dividend paid on its common stock by $100,000. Who bears the incidence of the corporate tax increase?

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

Which of the following is/are not a primary source of authority for the tax law?

Under U.S. tax law, corporations are entities separate and distinct from their shareholders.

The incidence of a state sales tax levied on the purchase of retail goods is:

Acme Inc.'s property taxes increased by $19,000 this year. As a result, Acme eliminated $19,000 from its budget for the employee Christmas party. Who bears the incidence of the corporate tax increase?

Which of the following federal taxes is not earmarked for a specific purpose?

Which of the following characterizes a good tax base?

Which of the following taxes is generally the most significant source of revenue for local governments?

The U.S. government does not have jurisdiction to tax U.S. citizens who are permanent residents of another country.

Revenue rulings and revenue procedures are written by:

Which of the following does not characterize federal transfer taxes?

Which of the following sources of tax law carries the least authority?

The city of Mayfield charges individuals convicted of DWI (driving while intoxicated) $500 for the first conviction and $2,000 for any subsequent conviction. These charges are an example of a(n):

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters