Question 1

The U.S. Constitution requires that federal tax legislation begins in the Senate.

Accepted Answer

A) True 
 B)False

Question 2

A tax on net income is an example of a transaction-based tax.

Accepted Answer

A) True 
 B)False

Question 3

Taxes on personal property are more difficult to administer and enforce than taxes on real property.

Accepted Answer

A) True 
 B)False

Question 4

SJF Inc., which has its corporate offices in Boise, Idaho, conducts business in Idaho, Oregon, California, and British Columbia, Canada. Which of the following statements is true?

Accepted Answer

A)  SJF must pay income tax only to Idaho and the United States. 
B)  SJF may be required to pay income tax to Idaho, Oregon, California, British Columbia, the United States, and Canada. 
C)  SJF must pay income tax only to Idaho, Oregon, California, and the United States. 
D)  SJF may be required to pay income tax to either the United States or to Canada, but not to both. 
A)  SJF must pay income tax only to Idaho and the United States. 
B)  SJF may be required to pay income tax to Idaho, Oregon, California, British Columbia, the United States, and Canada. 
C)  SJF must pay income tax only to Idaho, Oregon, California, and the United States. 
D)  SJF may be required to pay income tax to either the United States or to Canada, but not to both.

Question 5

Which of the following statements regarding tax systems is false?

Accepted Answer

A)  A single percentage that applies to the entire tax base is described as a flat rate. 
B)  When designing a tax, governments try to identify tax bases that taxpayers can easily avoid or conceal. 
C)  A tax base is an item, occurrence, transaction, or activity with respect to which a tax is levied. 
D)  With regard to tax systems, the term revenue refers to the total tax collected by the government. 
A)  A single percentage that applies to the entire tax base is described as a flat rate. 
B)  When designing a tax, governments try to identify tax bases that taxpayers can easily avoid or conceal. 
C)  A tax base is an item, occurrence, transaction, or activity with respect to which a tax is levied. 
D)  With regard to tax systems, the term revenue refers to the total tax collected by the government.

Question 6

The federal government collects more revenue from the corporate income tax than from the individual income tax.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements concerning sales taxes is false?

Accepted Answer

A)  Sales taxes apply to the purchase of most types of consumer goods. 
B)  Sales taxes apply to the purchase of most types of consumer services. 
C)  Sales taxes are collected by the seller when the sale is made. 
D)  Sales taxes imposed on the purchaser of retail items are consumption taxes. 
A)  Sales taxes apply to the purchase of most types of consumer goods. 
B)  Sales taxes apply to the purchase of most types of consumer services. 
C)  Sales taxes are collected by the seller when the sale is made. 
D)  Sales taxes imposed on the purchaser of retail items are consumption taxes.

Question 8

A tax with a graduated rate structure must have at least two brackets of tax base.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

Accepted Answer

A)  States have complete control over their corporate income tax revenues. 
B)  States do not have to enact comprehensive corporate income tax statutes. 
C)  Conformity eases the compliance burden of corporate taxpayers. 
D)  All of these choices are advantages of state conformity. 
A)  States have complete control over their corporate income tax revenues. 
B)  States do not have to enact comprehensive corporate income tax statutes. 
C)  Conformity eases the compliance burden of corporate taxpayers. 
D)  All of these choices are advantages of state conformity.

Question 10

Both the U.S. House of Representatives and the U.S. Senate must vote to approve a new federal tax bill before the bill is signed into law by the President.

Accepted Answer

A) True 
 B)False

Question 11

Mr. Smith resides in a state with a 6% sales and use tax. He recently traveled to another state to buy furniture and paid that state's 7% sales tax. Which of the following statements is true?

Accepted Answer

A)  Mr. Smith is entitled to a refund of 1% of the purchase price of the furniture. 
B)  Mr. Smith does not owe a use tax to his home state. 
C)  Mr. Smith's use tax liability to his home state equals 6% of the purchase price of the furniture. 
D)  None of these choices are true. 
A)  Mr. Smith is entitled to a refund of 1% of the purchase price of the furniture. 
B)  Mr. Smith does not owe a use tax to his home state. 
C)  Mr. Smith's use tax liability to his home state equals 6% of the purchase price of the furniture. 
D)  None of these choices are true.

Question 12

A sales tax is an example of an activity-based tax.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following taxes is a significant source of revenue for state governments?

Accepted Answer

A)  General sales tax 
B)  Individual income tax 
C)  Corporate income tax 
D)  All of these choices are correct 
A)  General sales tax 
B)  Individual income tax 
C)  Corporate income tax 
D)  All of these choices are correct

Question 14

Which of the following does not contribute to the dynamic nature of the tax law?

Accepted Answer

A)  The political pressure from professional lobbyists 
B)  Changes in the economic and social climate 
C)  Changes in revenue needs of the government 
D)  All of these choices contribute to the dynamic nature of the tax law 
A)  The political pressure from professional lobbyists 
B)  Changes in the economic and social climate 
C)  Changes in revenue needs of the government 
D)  All of these choices contribute to the dynamic nature of the tax law

Question 15

The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements concerning property taxes is false?

Accepted Answer

A)  Property taxes are ad valorem taxes. 
B)  Property taxes are the primary source of revenue for local governments. 
C)  Property taxes can be levied on realty or personalty. 
D)  None of these choices are false. 
A)  Property taxes are ad valorem taxes. 
B)  Property taxes are the primary source of revenue for local governments. 
C)  Property taxes can be levied on realty or personalty. 
D)  None of these choices are false.

Question 17

Forrest Township levies a tax on the assessed value of real property located within the town limits. The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000. Mildred Payne owns real estate with a $983,500 assessed value. Compute her property tax.

Accepted Answer

Mildred's property t

Question 18

A revenue ruling is an example of:

Accepted Answer

A)  Judicial authority 
B)  Administrative authority 
C)  Legislative authority 
D)  Editorial authority 
A)  Judicial authority 
B)  Administrative authority 
C)  Legislative authority 
D)  Editorial authority

Question 19

Which of the following statements about sales and use taxes is true?

Accepted Answer

A)  If an individual pays a sales tax on the purchase of an item, she will not have to pay a use tax on the purchase. 
B)  If an individual pays a sales tax on the purchase of an item, she will also have to pay a use tax on the purchase. 
C)  Many states that impose a sales tax do not impose a complementary use tax. 
D)  None of these choices are true. 
A)  If an individual pays a sales tax on the purchase of an item, she will not have to pay a use tax on the purchase. 
B)  If an individual pays a sales tax on the purchase of an item, she will also have to pay a use tax on the purchase. 
C)  Many states that impose a sales tax do not impose a complementary use tax. 
D)  None of these choices are true.

Question 20

Mr. Bilboa is a citizen of Portugal. Which of the following statements is true?

Accepted Answer

A)  The U.S. government has no jurisdiction to tax Mr. Bilboa because he is not a U.S. citizen. 
B)  The U.S. government has jurisdiction to tax Mr. Bilboa if he is a permanent resident of the United States. 
C)  The U.S. government has jurisdiction to tax Mr. Bilboa if he earns income from a business he operates in Florida. 
D)  Both the U.S. government has jurisdiction to tax Mr. Bilboa if he is a permanent resident of the United States and the U.S. government has jurisdiction to tax Mr. Bilboa if he earns income from a business he operates in Florida are true. 
A)  The U.S. government has no jurisdiction to tax Mr. Bilboa because he is not a U.S. citizen. 
B)  The U.S. government has jurisdiction to tax Mr. Bilboa if he is a permanent resident of the United States. 
C)  The U.S. government has jurisdiction to tax Mr. Bilboa if he earns income from a business he operates in Florida. 
D)  Both the U.S. government has jurisdiction to tax Mr. Bilboa if he is a permanent resident of the United States and the U.S. government has jurisdiction to tax Mr. Bilboa if he earns income from a business he operates in Florida are true.

The U.S. Constitution requires that federal tax legislation begins in the Senate.

A tax on net income is an example of a transaction-based tax.

Taxes on personal property are more difficult to administer and enforce than taxes on real property.

SJF Inc., which has its corporate offices in Boise, Idaho, conducts business in Idaho, Oregon, California, and British Columbia, Canada. Which of the following statements is true?

Which of the following statements regarding tax systems is false?

The federal government collects more revenue from the corporate income tax than from the individual income tax.

Which of the following statements concerning sales taxes is false?

A tax with a graduated rate structure must have at least two brackets of tax base.

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

Both the U.S. House of Representatives and the U.S. Senate must vote to approve a new federal tax bill before the bill is signed into law by the President.

Mr. Smith resides in a state with a 6% sales and use tax. He recently traveled to another state to buy furniture and paid that state's 7% sales tax. Which of the following statements is true?

A sales tax is an example of an activity-based tax.

Which of the following taxes is a significant source of revenue for state governments?

Which of the following does not contribute to the dynamic nature of the tax law?

The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.

Which of the following statements concerning property taxes is false?

Forrest Township levies a tax on the assessed value of real property located within the town limits. The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000. Mildred Payne owns real estate with a $983,500 assessed value. Compute her property tax.

A revenue ruling is an example of:

Which of the following statements about sales and use taxes is true?

Mr. Bilboa is a citizen of Portugal. Which of the following statements is true?

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

The U.S. Constitution requires that federal tax legislation begins in the Senate.

A tax on net income is an example of a transaction-based tax.

Taxes on personal property are more difficult to administer and enforce than taxes on real property.

SJF Inc., which has its corporate offices in Boise, Idaho, conducts business in Idaho, Oregon, California, and British Columbia, Canada. Which of the following statements is true?

Which of the following statements regarding tax systems is false?

The federal government collects more revenue from the corporate income tax than from the individual income tax.

Which of the following statements concerning sales taxes is false?

A tax with a graduated rate structure must have at least two brackets of tax base.

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

Both the U.S. House of Representatives and the U.S. Senate must vote to approve a new federal tax bill before the bill is signed into law by the President.

Mr. Smith resides in a state with a 6% sales and use tax. He recently traveled to another state to buy furniture and paid that state's 7% sales tax. Which of the following statements is true?

A sales tax is an example of an activity-based tax.

Which of the following taxes is a significant source of revenue for state governments?

Which of the following does not contribute to the dynamic nature of the tax law?

The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.

Which of the following statements concerning property taxes is false?

Forrest Township levies a tax on the assessed value of real property located within the town limits. The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000. Mildred Payne owns real estate with a $983,500 assessed value. Compute her property tax.

A revenue ruling is an example of:

Which of the following statements about sales and use taxes is true?

Mr. Bilboa is a citizen of Portugal. Which of the following statements is true?

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