Question 1

Which of the following statements regarding the tax levied under the Federal Insurance Contributions Act (FICA)is true?

Accepted Answer

A) It is also known as property tax. 
B) It is paid equally by employer and employee. 
C) It is not applicable to self-employed persons. 
D) It is applicable to all federal employees. 
E) It is used to provide insurance against theft. 
A) It is also known as property tax. 
B) It is paid equally by employer and employee. 
C) It is not applicable to self-employed persons. 
D) It is applicable to all federal employees. 
E) It is used to provide insurance against theft.

Question 2

The federal government receives a majority of its revenue from _____ tax.

Accepted Answer

A) sales 
B) property 
C) excise 
D) income 
E) estate 
A) sales 
B) property 
C) excise 
D) income 
E) estate

Question 3

You are preparing your own tax return. The least costly source for getting your questions answered would be:

Accepted Answer

A) the IRS office toll-free number. 
B) an enrolled agent. 
C) a tax accountant. 
D) a tax lawyer. 
E) the local post office. 
A) the IRS office toll-free number. 
B) an enrolled agent. 
C) a tax accountant. 
D) a tax lawyer. 
E) the local post office.

Question 4

Molly and Justin are considering contributing to a qualified tax-exempt organization. Their adjusted gross income is $100,000. What is the maximum amount they can claim as an itemized deduction under the Tax Cuts and Jobs Act of 2017?

Accepted Answer

A) $0 
B) $600 
C) $1,200 
D) $6,000 
E) $60,000 
A) $0 
B) $600 
C) $1,200 
D) $6,000 
E) $60,000

Question 5

Henry is married to Lillian, and they have two dependent children. Both of them want to file their own tax returns, reporting only his or her own income, deductions, and exemptions. The filing status of Henry and Lillian is:

Accepted Answer

A) single taxpayer. 
B) married filing jointly. 
C) head of household. 
D) qualifying widow. 
E) married filing separately. 
A) single taxpayer. 
B) married filing jointly. 
C) head of household. 
D) qualifying widow. 
E) married filing separately.

Question 6

Tax avoidance is legal, whereas tax evasion is illegal.

Accepted Answer

A) True 
 B)False

Question 7

Tax practitioners who are federally licensed are called:

Accepted Answer

A) certified public accountants. 
B) certified financial planners. 
C) tax attorneys. 
D) enrolled agents. 
E) chartered financial analysts. 
A) certified public accountants. 
B) certified financial planners. 
C) tax attorneys. 
D) enrolled agents. 
E) chartered financial analysts.

Which of the following statements regarding the tax levied under the Federal Insurance Contributions Act (FICA)is true?

The federal government receives a majority of its revenue from _____ tax.

You are preparing your own tax return. The least costly source for getting your questions answered would be:

Molly and Justin are considering contributing to a qualified tax-exempt organization. Their adjusted gross income is $100,000. What is the maximum amount they can claim as an itemized deduction under the Tax Cuts and Jobs Act of 2017?

Henry is married to Lillian, and they have two dependent children. Both of them want to file their own tax returns, reporting only his or her own income, deductions, and exemptions. The filing status of Henry and Lillian is:

Tax avoidance is legal, whereas tax evasion is illegal.

Tax practitioners who are federally licensed are called:

Understanding the Financial Process

Using Financial Statements and Budgets

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 3: Preparing Your Taxes

Which of the following statements regarding the tax levied under the Federal Insurance Contributions Act (FICA)is true?

The federal government receives a majority of its revenue from _____ tax.

You are preparing your own tax return. The least costly source for getting your questions answered would be:

Molly and Justin are considering contributing to a qualified tax-exempt organization. Their adjusted gross income is $100,000. What is the maximum amount they can claim as an itemized deduction under the Tax Cuts and Jobs Act of 2017?

Henry is married to Lillian, and they have two dependent children. Both of them want to file their own tax returns, reporting only his or her own income, deductions, and exemptions. The filing status of Henry and Lillian is:

Tax avoidance is legal, whereas tax evasion is illegal.

Tax practitioners who are federally licensed are called:

Understanding the Financial Process

Using Financial Statements and Budgets

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters