Question 1

Which of the following is not characteristic of an excise tax?

Accepted Answer

A)  An excise tax is levied on the retail sale of specific goods. 
B)  Excise tax rates typically are higher than general sales tax rates. 
C)  The purchaser is responsible for paying any excise tax directly to the government. 
D)  All of these choices are characteristics of an excise tax. 
A)  An excise tax is levied on the retail sale of specific goods. 
B)  Excise tax rates typically are higher than general sales tax rates. 
C)  The purchaser is responsible for paying any excise tax directly to the government. 
D)  All of these choices are characteristics of an excise tax.

Question 2

When did the federal income tax become a permanent tax?

Accepted Answer

A)  Immediately after the Revolutionary War 
B)  During the Civil War 
C)  In 1913 when the Sixteenth Amendment to the U.S. Constitution was ratified 
D)  In 1939 when Congress enacted the first Internal Revenue Code 
A)  Immediately after the Revolutionary War 
B)  During the Civil War 
C)  In 1913 when the Sixteenth Amendment to the U.S. Constitution was ratified 
D)  In 1939 when Congress enacted the first Internal Revenue Code

Question 3

Company D, which has its home office in Raleigh, North Carolina, conducts business in the United States, Canada, and Mexico. Which of the following statements is true?

Accepted Answer

A)  Because Company D must pay income tax to North Carolina, it is not required to pay tax to any other state. 
B)  Because Company D must pay income tax to North Carolina, it is not required to pay federal income tax. 
C)  Because Company D must pay income tax to the United States, it is not required to pay tax to Canada or Mexico. 
D)  None of these choices are true. 
A)  Because Company D must pay income tax to North Carolina, it is not required to pay tax to any other state. 
B)  Because Company D must pay income tax to North Carolina, it is not required to pay federal income tax. 
C)  Because Company D must pay income tax to the United States, it is not required to pay tax to Canada or Mexico. 
D)  None of these choices are true.

Question 4

What gives the federal government the right to impose a tax on individual and corporate income?

Accepted Answer

A)  Internal Revenue Code of 1986 
B)  Revenue Act of 1913 
C)  Sixteenth Amendment to the U.S. Constitution 
D)  Bill of Rights 
A)  Internal Revenue Code of 1986 
B)  Revenue Act of 1913 
C)  Sixteenth Amendment to the U.S. Constitution 
D)  Bill of Rights

Question 5

The Internal Revenue Code is written by the Internal Revenue Service.

Accepted Answer

A) True 
 B)False

Question 6

A sales tax is an example of a transaction-based tax.

Accepted Answer

A) True 
 B)False

Question 7

Which type of tax is not levied by the federal government?

Accepted Answer

A)  Corporate income tax 
B)  Individual income tax 
C)  Employment taxes 
D)  General sales tax 
A)  Corporate income tax 
B)  Individual income tax 
C)  Employment taxes 
D)  General sales tax

Question 8

Which of the following is not considered administrative authority?

Accepted Answer

A)  Treasury regulations 
B)  Revenue rulings 
C)  Tax Court decisions 
D)  All of these choices are administrative authorities 
A)  Treasury regulations 
B)  Revenue rulings 
C)  Tax Court decisions 
D)  All of these choices are administrative authorities

Question 9

The person who pays a tax directly to the government always bears the economic incidence of the tax.

Accepted Answer

A) True 
 B)False

Question 10

The U. S. House Ways and Means Committee is responsible for drafting new federal tax legislation.

Accepted Answer

A) True 
 B)False

Question 11

A sales tax can best be described as a(n):

Accepted Answer

A)  Consumption tax 
B)  Income tax 
C)  Activity tax 
D)  Ad valorem tax 
A)  Consumption tax 
B)  Income tax 
C)  Activity tax 
D)  Ad valorem tax

Question 12

The federal government imposed the first income tax to raise money to fight the War of 1812.

Accepted Answer

A) True 
 B)False

Question 13

Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.

Accepted Answer

A) True 
 B)False

Question 14

In some cases, the payer of a tax can shift the economic incidence of the tax to a third party.

Accepted Answer

A) True 
 B)False

Question 15

Ad valorem property taxes are the major source of revenue for local governments.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following taxes is not a significant source of revenue for local governments?

Accepted Answer

A)  Real property tax 
B)  Personal property tax 
C)  Employment tax 
D)  All of these choices are correct 
A)  Real property tax 
B)  Personal property tax 
C)  Employment tax 
D)  All of these choices are correct

Question 17

The federal government does not levy property taxes or a general sales tax.

Accepted Answer

A) True 
 B)False

Question 18

A tax is intended to deter or punish unacceptable behavior.

Accepted Answer

A) True 
 B)False

Question 19

Fewer than half of the state governments depend on some form of gambling as a source of revenue.

Accepted Answer

A) True 
 B)False

Question 20

Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.

Accepted Answer

A) True 
 B)False

Which of the following is not characteristic of an excise tax?

When did the federal income tax become a permanent tax?

Company D, which has its home office in Raleigh, North Carolina, conducts business in the United States, Canada, and Mexico. Which of the following statements is true?

What gives the federal government the right to impose a tax on individual and corporate income?

The Internal Revenue Code is written by the Internal Revenue Service.

A sales tax is an example of a transaction-based tax.

Which type of tax is not levied by the federal government?

Which of the following is not considered administrative authority?

The person who pays a tax directly to the government always bears the economic incidence of the tax.

The U. S. House Ways and Means Committee is responsible for drafting new federal tax legislation.

A sales tax can best be described as a(n):

The federal government imposed the first income tax to raise money to fight the War of 1812.

Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.

In some cases, the payer of a tax can shift the economic incidence of the tax to a third party.

Ad valorem property taxes are the major source of revenue for local governments.

Which of the following taxes is not a significant source of revenue for local governments?

The federal government does not levy property taxes or a general sales tax.

A tax is intended to deter or punish unacceptable behavior.

Fewer than half of the state governments depend on some form of gambling as a source of revenue.

Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.

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

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Exam 1: Taxes and Taxing Jurisdictions

Which of the following is not characteristic of an excise tax?

When did the federal income tax become a permanent tax?

Company D, which has its home office in Raleigh, North Carolina, conducts business in the United States, Canada, and Mexico. Which of the following statements is true?

What gives the federal government the right to impose a tax on individual and corporate income?

The Internal Revenue Code is written by the Internal Revenue Service.

A sales tax is an example of a transaction-based tax.

Which type of tax is not levied by the federal government?

Which of the following is not considered administrative authority?

The person who pays a tax directly to the government always bears the economic incidence of the tax.

The U. S. House Ways and Means Committee is responsible for drafting new federal tax legislation.

A sales tax can best be described as a(n):

The federal government imposed the first income tax to raise money to fight the War of 1812.

Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.

In some cases, the payer of a tax can shift the economic incidence of the tax to a third party.

Ad valorem property taxes are the major source of revenue for local governments.

Which of the following taxes is not a significant source of revenue for local governments?

The federal government does not levy property taxes or a general sales tax.

A tax is intended to deter or punish unacceptable behavior.

Fewer than half of the state governments depend on some form of gambling as a source of revenue.

Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.

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