Question 1

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

Accepted Answer

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

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

Taxes on personal property are more difficult to administer and enforce than taxes on real property.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following is an example of a transaction-based tax?

Accepted Answer

A) A tax on net business income. 
B) An excise tax. 
C) An estate tax on the transfer of assets at death. 
D) Both B.and C. 
A) A tax on net business income. 
B) An excise tax. 
C) An estate tax on the transfer of assets at death. 
D) Both B.and C.

Question 6

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 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

Which of the following statements regarding tax systems is false?

Accepted Answer

A) A single percentage that applies to the entire tax base is described as a flat rate. 
B) When designing a tax, governments try to identify tax bases that taxpayers can easily avoid or conceal. 
C) A tax base is an item, occurrence, transaction, or activity with respect to which a tax is levied. 
D) With regard to tax systems, the term revenue refers to the total tax collected by the government. 
A) A single percentage that applies to the entire tax base is described as a flat rate. 
B) When designing a tax, governments try to identify tax bases that taxpayers can easily avoid or conceal. 
C) A tax base is an item, occurrence, transaction, or activity with respect to which a tax is levied. 
D) With regard to tax systems, the term revenue refers to the total tax collected by the government.

Question 14

A business that operates in more than one state is required to pay state income tax only to the state in which it is incorporated.

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 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 16

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 17

Which tax raises the most revenue for the federal government?

Accepted Answer

A) Corporate income tax 
B) Individual income tax 
C) Excise taxes 
D) Transfer taxes 
A) Corporate income tax 
B) Individual income tax 
C) Excise taxes 
D) Transfer taxes

Question 18

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 19

Grant Wilson is an employee of Market Enterprises, a corporation operating in state A. Identify the different types of potential taxes to be paid by both Grant and Market Enterprises with respect to this employment relationship.
Grant is potentially liable for federal, state, and local income taxes. He will also be liable for federal employment taxes. Market Enterprises will pay federal employment taxes and federal and state unemployment taxes based on compensation paid to Grant.

Accepted Answer

Grant is potentially liable for federal,

Question 20

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

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

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

Taxes on personal property are more difficult to administer and enforce than taxes on real property.

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?

Which of the following is an example of a transaction-based tax?

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

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

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

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

When did the federal income tax become a permanent tax?

Which of the following statements concerning sales taxes is false?

Which of the following statements regarding tax systems is false?

A business that operates in more than one state is required to pay state income tax only to the state in which it is incorporated.

Which of the following does not characterize federal transfer taxes?

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

Which tax raises the most revenue for the federal government?

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):

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

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 taxes is a significant source of revenue for local governments?

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

Taxes on personal property are more difficult to administer and enforce than taxes on real property.

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?

Which of the following is an example of a transaction-based tax?

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

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

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

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

When did the federal income tax become a permanent tax?

Which of the following statements concerning sales taxes is false?

Which of the following statements regarding tax systems is false?

A business that operates in more than one state is required to pay state income tax only to the state in which it is incorporated.

Which of the following does not characterize federal transfer taxes?

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

Which tax raises the most revenue for the federal government?

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):

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

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