Question 1

Treasury regulations are tax laws written by the Treasury Department.

Accepted Answer

A) True 
 B)False

Question 2

Mrs.Renfru is a Brazilian citizen who permanently resides in Houston,Texas.Which of the following statements is true?

Accepted Answer

A) The U.S.government has no jurisdiction to tax Mrs.Renfru because she is not a U.S.citizen. 
B) The U.S.government has jurisdiction to tax Mrs.Renfru only on income that she earns from a source within the United States. 
C) The U.S.government has jurisdiction to tax Mrs.Renfru. 
D) Mrs.Renfru can elect whether to pay tax to the United States or to Brazil. 
A) The U.S.government has no jurisdiction to tax Mrs.Renfru because she is not a U.S.citizen. 
B) The U.S.government has jurisdiction to tax Mrs.Renfru only on income that she earns from a source within the United States. 
C) The U.S.government has jurisdiction to tax Mrs.Renfru. 
D) Mrs.Renfru can elect whether to pay tax to the United States or to Brazil.

Question 3

Which of the following does not contribute to the dynamic nature of the tax law?

Accepted Answer

A) The political pressure from professional lobbyists 
B) Changes in the economic and social climate 
C) Changes in revenue needs of the government 
D) All of the above contribute to the dynamic nature of the tax law 
A) The political pressure from professional lobbyists 
B) Changes in the economic and social climate 
C) Changes in revenue needs of the government 
D) All of the above contribute to the dynamic nature of the tax law

Question 4

Which of the following statements concerning property taxes is false?

Accepted Answer

A) Property taxes are ad valorem taxes. 
B) Property taxes are the primary source of revenue for local governments. 
C) Property taxes can be levied on realty or personalty. 
D) None of the above is false. 
A) Property taxes are ad valorem taxes. 
B) Property taxes are the primary source of revenue for local governments. 
C) Property taxes can be levied on realty or personalty. 
D) None of the above is false.

Question 5

A user fee entitles the payer to a specific good or service from the government.

Accepted Answer

A) True 
 B)False

Question 6

Acme Inc.'s property taxes increased by $65,000 this year.As a result,Acme increased the sale prices of its products to generate $65,000 more revenue.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 7

When did the federal income tax become a permanent tax?

Accepted Answer

A) Immediately after the Revolutionary War 
B) During the Civil War 
C) In 1913 when the Sixteenth Amendment to the U.S.Constitution was ratified 
D) In 1939 when Congress enacted the first Internal Revenue Code 
A) Immediately after the Revolutionary War 
B) During the Civil War 
C) In 1913 when the Sixteenth Amendment to the U.S.Constitution was ratified 
D) In 1939 when Congress enacted the first Internal Revenue Code

Question 8

Mr.Bilboa is a citizen of Portugal.Which of the following statements is true?

Accepted Answer

A) The U.S.government has no jurisdiction to tax Mr.Bilboa because he is not a U.S.citizen. 
B) The U.S.government has jurisdiction to tax Mr.Bilboa if he is a permanent resident of the United States. 
C) The U.S.government has jurisdiction to tax Mr.Bilboa if he earns income from a business he operates in Florida. 
D) Both B.and C.are true. 
A) The U.S.government has no jurisdiction to tax Mr.Bilboa because he is not a U.S.citizen. 
B) The U.S.government has jurisdiction to tax Mr.Bilboa if he is a permanent resident of the United States. 
C) The U.S.government has jurisdiction to tax Mr.Bilboa if he earns income from a business he operates in Florida. 
D) Both B.and C.are true.

Question 9

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 10

The property tax on a rent house owned by Mr.Janey increased by $1,200 this year.Mr.Janey increased the monthly rent charged to his tenant,Ms.Lacey,by $45.Who bears the incidence of the property tax increase?

Accepted Answer

A) Mr.Janey 
B) Ms.Lacey 
C) Both Mr.Janey and Ms.Lacey 
D) Neither Mr.Janey nor Ms.Lacey 
A) Mr.Janey 
B) Ms.Lacey 
C) Both Mr.Janey and Ms.Lacey 
D) Neither Mr.Janey nor Ms.Lacey

Question 11

Which of the following taxes is the most significant source of revenue for local governments?

Accepted Answer

A) Property tax 
B) Employment tax 
C) Income tax 
D) None of the above 
A) Property tax 
B) Employment tax 
C) Income tax 
D) None of the above

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

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Mr.Smith resides in a state with a 6% sales and use tax.He recently traveled to another state to buy a sailboat and paid that state's 7% sales tax.Which of the following statements is true?

Accepted Answer

A) Mr.Smith is entitled to a refund of 1% of the purchase price of the sailboat. 
B) Mr.Smith does not owe a use tax to his home state. 
C) Mr.Smith's use tax liability to his home state equals 6% of the purchase price of the sailboat. 
D) None of the above is true. 
A) Mr.Smith is entitled to a refund of 1% of the purchase price of the sailboat. 
B) Mr.Smith does not owe a use tax to his home state. 
C) Mr.Smith's use tax liability to his home state equals 6% of the purchase price of the sailboat. 
D) None of the above is true.

Question 16

The majority of state governments raise revenue from both personal and corporate income taxes.

Accepted Answer

A) True 
 B)False

Question 17

Mrs.King is a U.S.citizen who permanently resides in South Africa.Which of the following statements is true?

Accepted Answer

A) The U.S.government has jurisdiction to tax Mrs.King. 
B) The U.S.government has no jurisdiction to tax Mrs.King because she does not live in the United States. 
C) The U.S.government has no jurisdiction to tax Mrs.King because she does not earn any income from a source within the United States. 
D) Mrs.King can elect whether to pay tax to the United States or to South Africa. 
A) The U.S.government has jurisdiction to tax Mrs.King. 
B) The U.S.government has no jurisdiction to tax Mrs.King because she does not live in the United States. 
C) The U.S.government has no jurisdiction to tax Mrs.King because she does not earn any income from a source within the United States. 
D) Mrs.King can elect whether to pay tax to the United States or to South Africa.

Question 18

The incidence of a state sales tax levied on the purchase of retail goods is:

Accepted Answer

A) Borne by the ultimate consumer of the goods. 
B) Borne by the seller who must collect and remit the tax. 
C) Borne by the manufacturer of the goods. 
D) Borne by the government that levies the tax. 
A) Borne by the ultimate consumer of the goods. 
B) Borne by the seller who must collect and remit the tax. 
C) Borne by the manufacturer of the goods. 
D) Borne by the government that levies the tax.

Question 19

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 B.and C.are earmarked taxes. 
A) Corporate income tax 
B) Employment taxes 
C) Unemployment taxes 
D) Both B.and C.are earmarked taxes.

Question 20

Which of the following statements about sales and use taxes is true?

Accepted Answer

A) If an individual pays a sales tax on the purchase of an item,she will not have to pay a use tax on the purchase. 
B) An individual must pay both a sales tax and a use tax on the taxable purchase of an item. 
C) Many states that impose a sales tax do not impose a complementary use tax. 
D) None of the above is true. 
A) If an individual pays a sales tax on the purchase of an item,she will not have to pay a use tax on the purchase. 
B) An individual must pay both a sales tax and a use tax on the taxable purchase of an item. 
C) Many states that impose a sales tax do not impose a complementary use tax. 
D) None of the above is true.

Treasury regulations are tax laws written by the Treasury Department.

Mrs.Renfru is a Brazilian citizen who permanently resides in Houston,Texas.Which of the following statements is true?

Which of the following does not contribute to the dynamic nature of the tax law?

Which of the following statements concerning property taxes is false?

A user fee entitles the payer to a specific good or service from the government.

Acme Inc.'s property taxes increased by $65,000 this year.As a result,Acme increased the sale prices of its products to generate $65,000 more revenue.Who bears the incidence of the corporate tax increase?

When did the federal income tax become a permanent tax?

Mr.Bilboa is a citizen of Portugal.Which of the following statements is true?

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?

The property tax on a rent house owned by Mr.Janey increased by $1,200 this year.Mr.Janey increased the monthly rent charged to his tenant,Ms.Lacey,by $45.Who bears the incidence of the property tax increase?

Which of the following taxes is the most significant source of revenue for local governments?

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

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.

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

Mr.Smith resides in a state with a 6% sales and use tax.He recently traveled to another state to buy a sailboat and paid that state's 7% sales tax.Which of the following statements is true?

The majority of state governments raise revenue from both personal and corporate income taxes.

Mrs.King is a U.S.citizen who permanently resides in South Africa.Which of the following statements is true?

The incidence of a state sales tax levied on the purchase of retail goods is:

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

Which of the following statements about sales and use taxes is true?

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

Treasury regulations are tax laws written by the Treasury Department.

Mrs.Renfru is a Brazilian citizen who permanently resides in Houston,Texas.Which of the following statements is true?

Which of the following does not contribute to the dynamic nature of the tax law?

Which of the following statements concerning property taxes is false?

A user fee entitles the payer to a specific good or service from the government.

Acme Inc.'s property taxes increased by $65,000 this year.As a result,Acme increased the sale prices of its products to generate $65,000 more revenue.Who bears the incidence of the corporate tax increase?

When did the federal income tax become a permanent tax?

Mr.Bilboa is a citizen of Portugal.Which of the following statements is true?

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?

The property tax on a rent house owned by Mr.Janey increased by $1,200 this year.Mr.Janey increased the monthly rent charged to his tenant,Ms.Lacey,by $45.Who bears the incidence of the property tax increase?

Which of the following taxes is the most significant source of revenue for local governments?

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

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.

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

Mr.Smith resides in a state with a 6% sales and use tax.He recently traveled to another state to buy a sailboat and paid that state's 7% sales tax.Which of the following statements is true?

The majority of state governments raise revenue from both personal and corporate income taxes.

Mrs.King is a U.S.citizen who permanently resides in South Africa.Which of the following statements is true?

The incidence of a state sales tax levied on the purchase of retail goods is:

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

Which of the following statements about sales and use taxes is true?

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