Question 1

Under U.S. tax law, corporations are entities separate and distinct from their shareholders.

Accepted Answer

A) True 
 B)False

Question 2

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 3

The person who pays a tax directly to the government always bears the economic incidence of the tax.

Accepted Answer

A) True 
 B)False

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

The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.

Accepted Answer

A) True 
 B)False

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

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

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 11

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

Accepted Answer

A)  States have control over their corporate income tax revenues. 
B)  States do not have to enact comprehensive corporate income tax statutes. 
C)  Conformity eases the compliance burden of corporate taxpayers. 
D)  All of the above are advantages of state conformity. 
A)  States have control over their corporate income tax revenues. 
B)  States do not have to enact comprehensive corporate income tax statutes. 
C)  Conformity eases the compliance burden of corporate taxpayers. 
D)  All of the above are advantages of state conformity.

Question 12

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Which of the following statements about Treasury regulations is false?

Accepted Answer

A)  Treasury regulations are written to interpret and explain the Internal Revenue Code. 
B)  Treasury regulations are part of the statutory law. 
C)  A federal court can invalidate a Treasury regulation if the court concludes that the regulation incorrectly interprets the Internal Revenue Code. 
D)  None of the above is false. 
A)  Treasury regulations are written to interpret and explain the Internal Revenue Code. 
B)  Treasury regulations are part of the statutory law. 
C)  A federal court can invalidate a Treasury regulation if the court concludes that the regulation incorrectly interprets the Internal Revenue Code. 
D)  None of the above is false.

Question 15

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 16

A tax is intended to deter or punish unacceptable behavior.

Accepted Answer

A) True 
 B)False

Question 17

Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.

Accepted Answer

A) True 
 B)False

Question 18

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 19

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 20

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.

Under U.S. tax law, corporations are entities separate and distinct from their shareholders.

A revenue ruling is an example of:

The person who pays a tax directly to the government always bears the economic incidence of the tax.

Which of the following statements concerning property taxes is false?

The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.

Which of the following statements concerning judicial authority is false?

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

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?

How often does Congress amend the Internal Revenue Code?

Which of the following is an earmarked tax?

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

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

Which of the following statements about Treasury regulations is false?

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?

A tax is intended to deter or punish unacceptable behavior.

Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.

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.

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

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?

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

Under U.S. tax law, corporations are entities separate and distinct from their shareholders.

A revenue ruling is an example of:

The person who pays a tax directly to the government always bears the economic incidence of the tax.

Which of the following statements concerning property taxes is false?

The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.

Which of the following statements concerning judicial authority is false?

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

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?

How often does Congress amend the Internal Revenue Code?

Which of the following is an earmarked tax?

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

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

Which of the following statements about Treasury regulations is false?

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?

A tax is intended to deter or punish unacceptable behavior.

Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.

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.

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

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?

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