Question 1

Which of the following is an example of an activity-based tax?

Accepted Answer

A) A tax on business' net income 
B) An excise tax 
C) A gift tax on the transfer of assets by gift 
D) Both A.and C. 
A) A tax on business' net income 
B) An excise tax 
C) A gift tax on the transfer of assets by gift 
D) Both A.and C.

Question 2

According to the United States Supreme Court,businesses that sell over the internet must collect sales tax only from purchasers living in a state in which the business has a physical presence.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The Internal Revenue Code is written by the Internal Revenue Service.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

In some cases,the payer of a tax can shift the economic incidence of the tax to a third party.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Which of the following is/are not a primary source of authority for the tax law?

Accepted Answer

A) A revenue ruling published by the Internal Revenue Service 
B) Section 162 of the Internal Revenue Code 
C) Treasury Reg.§1.351-2 
D) All of the above are primary sources of authority 
A) A revenue ruling published by the Internal Revenue Service 
B) Section 162 of the Internal Revenue Code 
C) Treasury Reg.§1.351-2 
D) All of the above are primary sources of authority

Question 10

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 11

The city of Springvale imposes a net income tax on businesses operating within its jurisdiction.The tax equals 1% of income up to $100,000 and 1.5% of income in excess of $100,000.The Springvale Bar and Grill generated $782,000 net income this year.Compute its city income tax.

Accepted Answer

A) $10,230 
B) $11,230 
C) $11,730 
D) None of the above 
A) $10,230 
B) $11,230 
C) $11,730 
D) None of the above

Question 12

What gives the federal government the right to impose a tax on individual and corporate income?

Accepted Answer

A) Internal Revenue Code of 1986 
B) Revenue Act of 1913 
C) Sixteenth Amendment to the U.S.Constitution 
D) Bill of Rights 
A) Internal Revenue Code of 1986 
B) Revenue Act of 1913 
C) Sixteenth Amendment to the U.S.Constitution 
D) Bill of Rights

Question 13

Which of the following is an earmarked tax?

Accepted Answer

A) A tax imposed on the purchase of specific items such as liquor or cigarettes 
B) A tax that generates revenues that the government can spend only to build more National Parks 
C) A tax imposed only on individuals who earn more than $1 million annually 
D) A tax that generates revenues that the government can spend for any purpose 
A) A tax imposed on the purchase of specific items such as liquor or cigarettes 
B) A tax that generates revenues that the government can spend only to build more National Parks 
C) A tax imposed only on individuals who earn more than $1 million annually 
D) A tax that generates revenues that the government can spend for any purpose

Question 14

What is the major difference between a sales tax and an excise tax?

Accepted Answer

A) Sales taxes are levied by state governments,while excise taxes are levied only by the federal government. 
B) Sales taxes are imposed on the purchase of a wide variety of items,while excise taxes are imposed on the purchase of a few specific items. 
C) Sales taxes must be collected by the seller,while excise taxes must be paid directly by the purchaser. 
D) Sales taxes are imposed on the purchase of tangible goods,while excise taxes are imposed on the purchase of services. 
A) Sales taxes are levied by state governments,while excise taxes are levied only by the federal government. 
B) Sales taxes are imposed on the purchase of a wide variety of items,while excise taxes are imposed on the purchase of a few specific items. 
C) Sales taxes must be collected by the seller,while excise taxes must be paid directly by the purchaser. 
D) Sales taxes are imposed on the purchase of tangible goods,while excise taxes are imposed on the purchase of services.

Question 15

The federal government imposed the first income tax to raise money to fight the War of 1812.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) Revenue ruling 
B) Treasury regulation 
C) Section 736 of the Internal Revenue Code 
D) The three sources of tax law have equal authority 
A) Revenue ruling 
B) Treasury regulation 
C) Section 736 of the Internal Revenue Code 
D) The three sources of tax law have equal authority

Question 18

A tax is intended to deter or punish unacceptable behavior.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The U.S.government does not have jurisdiction to tax individuals who are U.S.citizens but who are permanent residents of another country.

Accepted Answer

A) True 
 B)False

Which of the following is an example of an activity-based tax?

According to the United States Supreme Court,businesses that sell over the internet must collect sales tax only from purchasers living in a state in which the business has a physical presence.

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

The Internal Revenue Code is written by the Internal Revenue Service.

Which of the following is not characteristic of a tax?

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?

In some cases,the payer of a tax can shift the economic incidence of the tax to a third party.

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

Which of the following is/are not a primary source of authority for the tax law?

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?

The city of Springvale imposes a net income tax on businesses operating within its jurisdiction.The tax equals 1% of income up to $100,000 and 1.5% of income in excess of $100,000.The Springvale Bar and Grill generated $782,000 net income this year.Compute its city income tax.

What gives the federal government the right to impose a tax on individual and corporate income?

Which of the following is an earmarked tax?

What is the major difference between a sales tax and an excise tax?

The federal government imposed the first income tax to raise money to fight the War of 1812.

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

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

A tax is intended to deter or punish unacceptable behavior.

Which of the following statements concerning sales taxes is false?

The U.S.government does not have jurisdiction to tax individuals who are U.S.citizens but who are permanent residents of another country.

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 is an example of an activity-based tax?

According to the United States Supreme Court,businesses that sell over the internet must collect sales tax only from purchasers living in a state in which the business has a physical presence.

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

The Internal Revenue Code is written by the Internal Revenue Service.

Which of the following is not characteristic of a tax?

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?

In some cases,the payer of a tax can shift the economic incidence of the tax to a third party.

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

Which of the following is/are not a primary source of authority for the tax law?

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?

The city of Springvale imposes a net income tax on businesses operating within its jurisdiction.The tax equals 1% of income up to $100,000 and 1.5% of income in excess of $100,000.The Springvale Bar and Grill generated $782,000 net income this year.Compute its city income tax.

What gives the federal government the right to impose a tax on individual and corporate income?

Which of the following is an earmarked tax?

What is the major difference between a sales tax and an excise tax?

The federal government imposed the first income tax to raise money to fight the War of 1812.

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

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

A tax is intended to deter or punish unacceptable behavior.

Which of the following statements concerning sales taxes is false?

The U.S.government does not have jurisdiction to tax individuals who are U.S.citizens but who are permanent residents of another country.

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