Question 1

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 B

Question 2

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 3

Treasury regulations are tax laws written by the Treasury Department.

Accepted Answer

A) True 
 B)False  False

Question 4

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 the above 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 the above characterize a good tax base.

Question 5

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 6

Which of the following is not characteristic of a tax?

Accepted Answer

A)  A tax is compulsory. 
B)  A tax is intended to punish unacceptable behavior. 
C)  A tax is levied by a government. 
D)  All of the above are characteristics of a tax. 
A)  A tax is compulsory. 
B)  A tax is intended to punish unacceptable behavior. 
C)  A tax is levied by a government. 
D)  All of the above are characteristics of a tax.

Question 7

Company N operates a mail order business out of its headquarters in Tulsa, Oklahoma. This year, it mailed $892,000 worth of product to customers residing in Oklahoma and $489,300 worth of product to customers residing in Missouri. Which of the following statements is true?

Accepted Answer

A)  Company N must collect Oklahoma sales tax from its Oklahoma customers and Missouri sales tax from its Missouri customers. 
B)  Company N must collect Oklahoma sales tax from both its Oklahoma and Missouri customers. 
C)  Company N must collect Oklahoma sales tax from its Oklahoma customers. 
D)  Company D is not required to collect sales tax on any mail order sales. 
A)  Company N must collect Oklahoma sales tax from its Oklahoma customers and Missouri sales tax from its Missouri customers. 
B)  Company N must collect Oklahoma sales tax from both its Oklahoma and Missouri customers. 
C)  Company N must collect Oklahoma sales tax from its Oklahoma customers. 
D)  Company D is not required to collect sales tax on any mail order sales.

Question 8

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 9

Which of the following does not characterize federal transfer taxes?

Accepted Answer

A)  The tax is imposed on individuals but not on corporations. 
B)  The tax is based on the value of property transferred by gift or at death. 
C)  The tax is a transaction tax. 
D)  All of the above characterize federal transfer taxes. 
A)  The tax is imposed on individuals but not on corporations. 
B)  The tax is based on the value of property transferred by gift or at death. 
C)  The tax is a transaction tax. 
D)  All of the above characterize federal transfer taxes.

Question 10

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 the above is 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 the above is true.

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

How often does Congress amend the Internal Revenue Code?

Accepted Answer

A)  Rarely (the Internal Revenue Code has not been amended since 1986) 
B)  Occasionally (perhaps once every decade) 
C)  Regularly (at least once every five years) 
D)  Constantly (at least once a year) 
A)  Rarely (the Internal Revenue Code has not been amended since 1986) 
B)  Occasionally (perhaps once every decade) 
C)  Regularly (at least once every five years) 
D)  Constantly (at least once a year)

Question 16

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

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

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 the above statements is 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 the above statements is false.

Question 19

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 the above 
A)  General sales tax 
B)  Individual income tax 
C)  Corporate income tax 
D)  All of the above

Question 20

Which of the following is not considered administrative authority?

Accepted Answer

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

A revenue ruling is an example of:

Which tax raises the most revenue for the federal government?

Treasury regulations are tax laws written by the Treasury Department.

Which of the following characterizes a good tax base?

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

Which of the following is not characteristic of a tax?

Company N operates a mail order business out of its headquarters in Tulsa, Oklahoma. This year, it mailed $892,000 worth of product to customers residing in Oklahoma and $489,300 worth of product to customers residing in Missouri. Which of the following statements is true?

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

Which of the following does not characterize federal transfer taxes?

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?

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.

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

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

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

How often does Congress amend the Internal Revenue Code?

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):

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.

Which of the following statements concerning judicial authority is false?

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

Which of the following is not considered administrative authority?

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

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

A revenue ruling is an example of:

Which tax raises the most revenue for the federal government?

Treasury regulations are tax laws written by the Treasury Department.

Which of the following characterizes a good tax base?

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

Which of the following is not characteristic of a tax?

Company N operates a mail order business out of its headquarters in Tulsa, Oklahoma. This year, it mailed $892,000 worth of product to customers residing in Oklahoma and $489,300 worth of product to customers residing in Missouri. Which of the following statements is true?

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

Which of the following does not characterize federal transfer taxes?

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?

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.

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

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

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

How often does Congress amend the Internal Revenue Code?

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):

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.

Which of the following statements concerning judicial authority is false?

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

Which of the following is not considered administrative authority?

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

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