Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A state government may levy either a sales tax or a use tax on consumers but not both.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Mr. Dodd 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 4% sales tax. Which of the following statements is true?

Accepted Answer

A)  Mr. Dodd's use tax liability to his home state equals 2% of the purchase price of the furniture. 
B)  Mr. Dodd does not owe a use tax to his home state. 
C)  Mr. Dodd's use tax liability to his home state equals 6% of the purchase price of the furniture. 
D)  None of the above is true. 
A)  Mr. Dodd's use tax liability to his home state equals 2% of the purchase price of the furniture. 
B)  Mr. Dodd does not owe a use tax to his home state. 
C)  Mr. Dodd's use tax liability to his home state equals 6% of the purchase price of the furniture. 
D)  None of the above is true.

Question 5

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 6

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 7

Which of the following does not characterize federal transfer taxes?

Accepted Answer

A)  The tax is imposed on individuals but not on corporations. 
B)  The tax is based on the value of property transferred by gift or at death. 
C)  The tax is a transaction tax. 
D)  All of the above characterize federal transfer taxes. 
A)  The tax is imposed on individuals but not on corporations. 
B)  The tax is based on the value of property transferred by gift or at death. 
C)  The tax is a transaction tax. 
D)  All of the above characterize federal transfer taxes.

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

Revenue rulings and revenue procedures are written by:

Accepted Answer

A)  The Internal Revenue Service 
B)  The Department of the Treasury 
C)  The United States Congress 
D)  The Supreme Court 
A)  The Internal Revenue Service 
B)  The Department of the Treasury 
C)  The United States Congress 
D)  The Supreme Court

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A tax is intended to deter or punish unacceptable behavior.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

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 18

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 19

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 20

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

Accepted Answer

A) True 
 B)False

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

A state government may levy either a sales tax or a use tax on consumers but not both.

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

Mr. Dodd 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 4% sales tax. Which of the following statements is true?

Which of the following does not characterize federal transfer taxes?

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

Which of the following does not characterize federal transfer taxes?

Which of the following is not considered administrative authority?

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

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.

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.

Revenue rulings and revenue procedures are written by:

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

A tax is intended to deter or punish unacceptable behavior.

Which of the following is an example of an activity-based 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):

Which of the following statements concerning judicial authority is false?

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

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?

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

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

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

A state government may levy either a sales tax or a use tax on consumers but not both.

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

Mr. Dodd 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 4% sales tax. Which of the following statements is true?

Which of the following does not characterize federal transfer taxes?

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

Which of the following does not characterize federal transfer taxes?

Which of the following is not considered administrative authority?

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

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.

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.

Revenue rulings and revenue procedures are written by:

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

A tax is intended to deter or punish unacceptable behavior.

Which of the following is an example of an activity-based 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):

Which of the following statements concerning judicial authority is false?

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

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?

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

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