Question 1

Which of the following is not characteristic of an excise tax?

Accepted Answer

A) An excise tax is levied on the retail sale of specific goods. 
B) Excise tax rates typically are higher than general sales tax rates. 
C) Purchasers of luxury items are responsible for paying any excise tax directly to the government. 
D) All of the above are characteristics of an excise tax. 
A) An excise tax is levied on the retail sale of specific goods. 
B) Excise tax rates typically are higher than general sales tax rates. 
C) Purchasers of luxury items are responsible for paying any excise tax directly to the government. 
D) All of the above are characteristics of an excise tax.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

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 9

A sales tax is an example of an activity-based tax.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Which of the following taxes is not a significant source of revenue for local governments?

Accepted Answer

A) Real property tax 
B) Personal property tax 
C) Employment tax 
D) All of the above 
A) Real property tax 
B) Personal property tax 
C) Employment tax 
D) All of the above

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements regarding the political process of creating tax law is false?

Accepted Answer

A) The political process contributes to the dynamic nature of the tax law. 
B) Special interest groups have little effect on the tax legislative process. 
C) When taxpayers device a new tactic for reducing their tax burdens, governments respond by enacting a new rule to render the tactic ineffective. 
D) Changes in political philosophy often reflect shifts in the public attitude about the proper role of taxes in society. 
A) The political process contributes to the dynamic nature of the tax law. 
B) Special interest groups have little effect on the tax legislative process. 
C) When taxpayers device a new tactic for reducing their tax burdens, governments respond by enacting a new rule to render the tactic ineffective. 
D) Changes in political philosophy often reflect shifts in the public attitude about the proper role of taxes in society.

Question 19

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 20

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.

Which of the following is not characteristic of an excise tax?

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

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

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

Which of the following statements about Treasury regulations is false?

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

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?

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.

A sales tax is an example of an activity-based tax.

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 taxes is not a significant source of revenue for local governments?

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

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

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

Which of the following does not characterize federal transfer taxes?

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

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

Which of the following statements regarding the political process of creating tax law is false?

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?

What is the major difference between a sales tax and an excise 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 a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

Filters

Exam 1: Taxes and Taxing Jurisdictions

Which of the following is not characteristic of an excise tax?

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

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

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

Which of the following statements about Treasury regulations is false?

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

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?

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.

A sales tax is an example of an activity-based tax.

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 taxes is not a significant source of revenue for local governments?

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

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

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

Which of the following does not characterize federal transfer taxes?

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

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

Which of the following statements regarding the political process of creating tax law is false?

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?

What is the major difference between a sales tax and an excise 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 a Present Value of $1 B Present Value of Annuity of $1 C 2013 Income Tax Rates

Filters