Question 1

The state of Oklahoma imposes a tax of $.17 per gallon on gasoline.What type of tax is this most likely to be?

Accepted Answer

A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax 
A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax B

Question 2

Most people pay the following taxes:

Accepted Answer

A) taxes on purchases. 
B) taxes on property. 
C) taxes on wealth. 
D) taxes on earnings. 
E) All of these 
A) taxes on purchases. 
B) taxes on property. 
C) taxes on wealth. 
D) taxes on earnings. 
E) All of these E

Question 3

Which of the following is a major source of revenue for local governments?

Accepted Answer

A) Real estate property tax 
B) Excise tax 
C) Estate tax 
D) Inheritance tax 
E) Social Security tax 
A) Real estate property tax 
B) Excise tax 
C) Estate tax 
D) Inheritance tax 
E) Social Security tax A

Question 4

Most people pay federal income tax by:

Accepted Answer

A) paying the total amount owed on April 15. 
B) filing quarterly tax returns. 
C) having amounts deducted from his/her pay. 
D) earning tax credits for various deductions. 
E) filing the 1040 EZ form. 
A) paying the total amount owed on April 15. 
B) filing quarterly tax returns. 
C) having amounts deducted from his/her pay. 
D) earning tax credits for various deductions. 
E) filing the 1040 EZ form.

Question 5

A deduction from adjusted gross income for yourself,your spouse,and qualified dependents is:

Accepted Answer

A) the standard deduction. 
B) a tax credit. 
C) an itemized deduction. 
D) an exclusion. 
E) an exemption. 
A) the standard deduction. 
B) a tax credit. 
C) an itemized deduction. 
D) an exclusion. 
E) an exemption.

Question 6

Which type of tax is imposed on specific goods and services,such as gasoline,at the time of purchase?

Accepted Answer

A) Estate 
B) Inheritance 
C) Excise 
D) General sales 
E) Value-added 
A) Estate 
B) Inheritance 
C) Excise 
D) General sales 
E) Value-added

Question 7

Which one of the following states does not have a general sales tax?

Accepted Answer

A) Virginia 
B) Maryland 
C) Texas 
D) Alaska 
E) Michigan 
A) Virginia 
B) Maryland 
C) Texas 
D) Alaska 
E) Michigan

Question 8

Thomas Franklin claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill.This is referred to as tax:

Accepted Answer

A) avoidance. 
B) acceleration. 
C) evasion. 
D) delaying. 
E) deferment. 
A) avoidance. 
B) acceleration. 
C) evasion. 
D) delaying. 
E) deferment.

Question 9

How is taxable income computed?

Accepted Answer

Taxable income is a result of

Question 10

When planning to use a tax preparation service,what factors should be considered?

Accepted Answer

The follow

Question 11

Tax evasion is the use of illegal actions to reduce one's taxes.

Accepted Answer

A) True 
 B)False

Question 12

Kelly Vernon wants her tax return prepared by a government approved tax expert.Which of the following tax preparers should Kelly use?

Accepted Answer

A) CPA 
B) Enrolled agent 
C) Nationally-certified tax preparer 
D) Tax attorney 
E) Local tax preparer 
A) CPA 
B) Enrolled agent 
C) Nationally-certified tax preparer 
D) Tax attorney 
E) Local tax preparer

Question 13

Michael closed on his new home December 31,2016 instead of January 1,2017.As a result,Michael:

Accepted Answer

A) accelerated tax deductions in 2016. 
B) accelerated tax deductions in 2017. 
C) increased his adjusted gross income in 2016. 
D) decreased his adjusted gross income in 2017. 
E) decreased tax exemptions in 2016. 
A) accelerated tax deductions in 2016. 
B) accelerated tax deductions in 2017. 
C) increased his adjusted gross income in 2016. 
D) decreased his adjusted gross income in 2017. 
E) decreased tax exemptions in 2016.

Question 14

Joan Sanchez is single and earns $40,000 in taxable income.She uses the following tax rate schedule to calculate the taxes she owes.
  What is Joan's marginal tax rate?

Accepted Answer

A) 10% 
B) 15% 
C) 25% 
D) 28% 
E) between 10% and 15% 
A) 10% 
B) 15% 
C) 25% 
D) 28% 
E) between 10% and 15%

Question 15

Tim Bridges owns a bass fishing boat.His state imposes an annual 3.25 percent tax on the current value of this boat.What type of tax is this most likely to be?

Accepted Answer

A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax 
A) General sales tax 
B) Excise tax 
C) Personal property tax 
D) Income tax 
E) Estate tax

Question 16

A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:

Accepted Answer

A) receive a refund of $3,975. 
B) owe $4,350. 
C) owe $375. 
D) receive a refund of $4,350. 
E) receive a refund of $375. 
A) receive a refund of $3,975. 
B) owe $4,350. 
C) owe $375. 
D) receive a refund of $4,350. 
E) receive a refund of $375.

Question 17

The ______________ property tax is based on the value of land and buildings at some point in time.

Accepted Answer

A) personal 
B) real estate 
C) direct 
D) proportional 
E) regressive 
A) personal 
B) real estate 
C) direct 
D) proportional 
E) regressive

Question 18

An expense that would be included in the itemized deductions of a taxpayer is:

Accepted Answer

A) personal postage expenses. 
B) life insurance premiums. 
C) real estate property taxes. 
D) retirement plan contributions. 
E) annual interest paid on credit cards. 
A) personal postage expenses. 
B) life insurance premiums. 
C) real estate property taxes. 
D) retirement plan contributions. 
E) annual interest paid on credit cards.

Question 19

Cameron Nelson wants to complete his own federal income tax return.He has several questions about the tax form to use and what items should be reported as income.What sources of assistance would you recommend for Cameron?

Accepted Answer

The IRS offers taxpayer assistance in se

Question 20

Which one of the following people is least likely to have to file a federal income tax return?

Accepted Answer

A) A U.S.citizen who is a resident of Puerto Rico. 
B) A U.S.citizen earning $8,000 where taxes were withheld. 
C) A single person earning less than $10,000. 
D) A single person over age 65 earning $15,000. 
E) A 28-year old single college student earning more than $11,000. 
A) A U.S.citizen who is a resident of Puerto Rico. 
B) A U.S.citizen earning $8,000 where taxes were withheld. 
C) A single person earning less than $10,000. 
D) A single person over age 65 earning $15,000. 
E) A 28-year old single college student earning more than $11,000.

The state of Oklahoma imposes a tax of $.17 per gallon on gasoline.What type of tax is this most likely to be?

Most people pay the following taxes:

Which of the following is a major source of revenue for local governments?

Most people pay federal income tax by:

A deduction from adjusted gross income for yourself,your spouse,and qualified dependents is:

Which type of tax is imposed on specific goods and services,such as gasoline,at the time of purchase?

Which one of the following states does not have a general sales tax?

Thomas Franklin claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill.This is referred to as tax:

How is taxable income computed?

When planning to use a tax preparation service,what factors should be considered?

Tax evasion is the use of illegal actions to reduce one's taxes.

Kelly Vernon wants her tax return prepared by a government approved tax expert.Which of the following tax preparers should Kelly use?

Michael closed on his new home December 31,2016 instead of January 1,2017.As a result,Michael:

Joan Sanchez is single and earns $40,000 in taxable income.She uses the following tax rate schedule to calculate the taxes she owes. What is Joan's marginal tax rate?

Tim Bridges owns a bass fishing boat.His state imposes an annual 3.25 percent tax on the current value of this boat.What type of tax is this most likely to be?

A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:

The ______________ property tax is based on the value of land and buildings at some point in time.

An expense that would be included in the itemized deductions of a taxpayer is:

Cameron Nelson wants to complete his own federal income tax return.He has several questions about the tax form to use and what items should be reported as income.What sources of assistance would you recommend for Cameron?

Which one of the following people is least likely to have to file a federal income tax return?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 4: Planning Your Tax Strategy

The state of Oklahoma imposes a tax of $.17 per gallon on gasoline.What type of tax is this most likely to be?

Most people pay the following taxes:

Which of the following is a major source of revenue for local governments?

Most people pay federal income tax by:

A deduction from adjusted gross income for yourself,your spouse,and qualified dependents is:

Which type of tax is imposed on specific goods and services,such as gasoline,at the time of purchase?

Which one of the following states does not have a general sales tax?

Thomas Franklin claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill.This is referred to as tax:

How is taxable income computed?

When planning to use a tax preparation service,what factors should be considered?

Tax evasion is the use of illegal actions to reduce one's taxes.

Kelly Vernon wants her tax return prepared by a government approved tax expert.Which of the following tax preparers should Kelly use?

Michael closed on his new home December 31,2016 instead of January 1,2017.As a result,Michael:

Joan Sanchez is single and earns $40,000 in taxable income.She uses the following tax rate schedule to calculate the taxes she owes. What is Joan's marginal tax rate?

Tim Bridges owns a bass fishing boat.His state imposes an annual 3.25 percent tax on the current value of this boat.What type of tax is this most likely to be?

A person with a total tax liability of $4,350 and withholding of federal taxes of $3,975 would:

The ______________ property tax is based on the value of land and buildings at some point in time.

An expense that would be included in the itemized deductions of a taxpayer is:

Cameron Nelson wants to complete his own federal income tax return.He has several questions about the tax form to use and what items should be reported as income.What sources of assistance would you recommend for Cameron?

Which one of the following people is least likely to have to file a federal income tax return?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters