Question 1

Which of the following statements about the Internal Revenue Code is false?

Accepted Answer

A) The Internal Revenue Code has not been amended since 1986. 
B) The Internal Revenue Code is part of federal statutory law. 
C) The Internal Revenue Code consists of numerically organized sections. 
D) Only Congress has the authority to amend the Internal Revenue Code. 
A) The Internal Revenue Code has not been amended since 1986. 
B) The Internal Revenue Code is part of federal statutory law. 
C) The Internal Revenue Code consists of numerically organized sections. 
D) Only Congress has the authority to amend the Internal Revenue Code.

Question 2

Payment of a tax entitles the payer to a specific good or service from the government.

Accepted Answer

A) True 
 B)False

Question 3

Acme Inc.'s property taxes increased by $19,000 this year.As a result,Acme eliminated $19,000 from its budget for the employee Christmas party.Who bears the incidence of the corporate tax increase?

Accepted Answer

A) Acme Inc. 
B) Acme's customers. 
C) Acme's employees. 
D) Acme's shareholders. 
A) Acme Inc. 
B) Acme's customers. 
C) Acme's employees. 
D) Acme's shareholders.

Question 4

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 5

Which of the following sources of tax law carries the most authority?

Accepted Answer

A) Revenue procedure 
B) Treasury regulation 
C) Supreme Court decision 
D) The three sources of tax law have equal authority 
A) Revenue procedure 
B) Treasury regulation 
C) Supreme Court decision 
D) The three sources of tax law have equal authority

Question 6

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 7

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 8

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 9

Acme Inc.'s federal income tax increased by $100,000 this year.As a result,Acme reduced the annual dividend paid on its common stock by $100,000.Who bears the incidence of the corporate tax increase?

Accepted Answer

A) Acme Inc. 
B) Acme's customers 
C) Acme's employees 
D) Acme's shareholders 
A) Acme Inc. 
B) Acme's customers 
C) Acme's employees 
D) Acme's shareholders

Question 10

Government Q imposes a net income tax on businesses operating within its jurisdiction.The tax equals 3% of income up to $500,000 and 5% of income in excess of $500,000.Company K generated $782,000 net income this year.Compute the income tax that Company K owes to Q.

Accepted Answer

A) $29,100 
B) $14,100 
C) $39,100 
D) None of the above 
A) $29,100 
B) $14,100 
C) $39,100 
D) None of the above

Question 11

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 12

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 13

Which of the following does not characterize federal transfer taxes?

Accepted Answer

A) The tax is imposed on the value of wealth transferred by an individual as a gift. 
B) The tax is imposed on the value of wealth transferred because of the death of an individual. 
C) The tax is imposed on the value of wealth transferred by an individual to charity. 
D) All of the above characterize federal transfer taxes. 
A) The tax is imposed on the value of wealth transferred by an individual as a gift. 
B) The tax is imposed on the value of wealth transferred because of the death of an individual. 
C) The tax is imposed on the value of wealth transferred by an individual to charity. 
D) All of the above characterize federal transfer taxes.

Question 14

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

Question 15

The state of Virginia charges motorists 50 cents for every trip across a toll bridge over the James River.This charge is an example of a(n):

Accepted Answer

A) User's fee 
B) Transaction-based tax 
C) Activity-based tax 
D) Excise tax 
A) User's fee 
B) Transaction-based tax 
C) Activity-based tax 
D) Excise tax

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 (usually 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 (usually once a year)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Which of the following statements about the Internal Revenue Code is false?

Payment of a tax entitles the payer to a specific good or service from the government.

Acme Inc.'s property taxes increased by $19,000 this year.As a result,Acme eliminated $19,000 from its budget for the employee Christmas party.Who bears the incidence of the corporate tax increase?

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.

Which of the following sources of tax law carries the most authority?

Which of the following statements concerning judicial authority is false?

Which of the following characterizes a good tax base?

A revenue ruling is an example of:

Acme Inc.'s federal income tax increased by $100,000 this year.As a result,Acme reduced the annual dividend paid on its common stock by $100,000.Who bears the incidence of the corporate tax increase?

Government Q imposes a net income tax on businesses operating within its jurisdiction.The tax equals 3% of income up to $500,000 and 5% of income in excess of $500,000.Company K generated $782,000 net income this year.Compute the income tax that Company K owes to Q.

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

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

Which of the following does not characterize federal transfer taxes?

Which of the following is not considered administrative authority?

The state of Virginia charges motorists 50 cents for every trip across a toll bridge over the James River.This charge is an example of a(n):

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

How often does Congress amend the Internal Revenue Code?

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

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):

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

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

Which of the following statements about the Internal Revenue Code is false?

Payment of a tax entitles the payer to a specific good or service from the government.

Acme Inc.'s property taxes increased by $19,000 this year.As a result,Acme eliminated $19,000 from its budget for the employee Christmas party.Who bears the incidence of the corporate tax increase?

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.

Which of the following sources of tax law carries the most authority?

Which of the following statements concerning judicial authority is false?

Which of the following characterizes a good tax base?

A revenue ruling is an example of:

Acme Inc.'s federal income tax increased by $100,000 this year.As a result,Acme reduced the annual dividend paid on its common stock by $100,000.Who bears the incidence of the corporate tax increase?

Government Q imposes a net income tax on businesses operating within its jurisdiction.The tax equals 3% of income up to $500,000 and 5% of income in excess of $500,000.Company K generated $782,000 net income this year.Compute the income tax that Company K owes to Q.

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

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

Which of the following does not characterize federal transfer taxes?

Which of the following is not considered administrative authority?

The state of Virginia charges motorists 50 cents for every trip across a toll bridge over the James River.This charge is an example of a(n):

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

How often does Congress amend the Internal Revenue Code?

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

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):

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

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