Question 1

Arthur pays tax of $5,000 on taxable income of $50,000 while taxpayer Barbara pays tax of $12,000 on $120,000.The tax is a

Accepted Answer

A)  progressive tax. 
B)  proportional tax. 
C)  regressive tax. 
D)  None of the above. 
A)  progressive tax. 
B)  proportional tax. 
C)  regressive tax. 
D)  None of the above.

Question 2

All of the following are classified as flow-through entities for tax purposes except

Accepted Answer

A)  partnerships. 
B)  C corporations. 
C)  S corporations. 
D)  limited liability companies. 
A)  partnerships. 
B)  C corporations. 
C)  S corporations. 
D)  limited liability companies.

Question 3

If a taxpayer's total tax liability is $30,000,taxable income is $100,000,and economic income is $120,000,the average tax rate is 30 percent.

Accepted Answer

A) True 
 B)False

Question 4

When returns are processed,they are scored to determine their potential for yielding additional tax revenues.This program is called

Accepted Answer

A)  Taxpayer Compliance Measurement Program. 
B)  Discriminant Function System. 
C)  Standard Audit Program. 
D)  Field Audit Program. 
A)  Taxpayer Compliance Measurement Program. 
B)  Discriminant Function System. 
C)  Standard Audit Program. 
D)  Field Audit Program.

Question 5

Jillian,a single individual,earns $230,000 in 2017 through her job as an accounting manager.What is her FICA tax?

Accepted Answer

A)  $11,491 
B)  $11,221 
C)  $17,595 
D)  $10,001 
A)  $11,491 
B)  $11,221 
C)  $17,595 
D)  $10,001

Question 6

A progressive tax rate structure is one where the rate of tax increases as the tax base increases.

Accepted Answer

A) True 
 B)False

Question 7

The unified transfer tax system,comprised of the gift and estate taxes,is based upon the total property transfers an individual makes during lifetime and at death.

Accepted Answer

A) True 
 B)False

Question 8

Organizing a corporation as an S Corporation results in a single level of taxation.

Accepted Answer

A) True 
 B)False

Question 9

A proportional tax rate is one where the rate of the tax is the same for all taxpayers,regardless of income levels.

Accepted Answer

A) True 
 B)False

Question 10

When new tax legislation is being considered by Congress

Accepted Answer

A)  the tax bill will usually originate in the Senate. 
B)  different versions of the House and Senate bills are reconciled by the Speaker of the House and the President of the Senate. 
C)  different versions of the House and Senate bills are reconciled by a Joint Conference Committee. 
D)  after the President of the United States approves a tax bill, the Joint Conference Committee must then vote on passage of the bill. 
A)  the tax bill will usually originate in the Senate. 
B)  different versions of the House and Senate bills are reconciled by the Speaker of the House and the President of the Senate. 
C)  different versions of the House and Senate bills are reconciled by a Joint Conference Committee. 
D)  after the President of the United States approves a tax bill, the Joint Conference Committee must then vote on passage of the bill.

Question 11

Which is not a component of tax practice?

Accepted Answer

A)  providing clients tax refund advance loans 
B)  tax research 
C)  tax planning and consulting 
D)  compliance 
A)  providing clients tax refund advance loans 
B)  tax research 
C)  tax planning and consulting 
D)  compliance

Question 12

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

Accepted Answer

A)  $6,250. 
B)  $8,750. 
C)  $16,250. 
D)  $18,750. 
A)  $6,250. 
B)  $8,750. 
C)  $16,250. 
D)  $18,750.

Question 13

The marginal tax rate is useful in tax planning because it measures the tax effect of a proposed transaction.

Accepted Answer

A) True 
 B)False

Question 14

If a taxpayer's total tax liability is $4,000,taxable income is $20,000,and total economic income is $40,000,then the effective tax rate is 20 percent.

Accepted Answer

A) True 
 B)False

Question 15

Generally,tax legislation is introduced first in the Senate and referred to the Senate Finance Committee.

Accepted Answer

A) True 
 B)False

Question 16

The Senate equivalent of the House Ways and Means Committee is the Senate

Accepted Answer

A)  Joint Committee on Taxation. 
B)  Ways and Means Committee. 
C)  Finance Committee. 
D)  Joint Conference Committee. 
A)  Joint Committee on Taxation. 
B)  Ways and Means Committee. 
C)  Finance Committee. 
D)  Joint Conference Committee.

Question 17

Which of the following is not a taxpaying entity?

Accepted Answer

A)  C Corporation 
B)  Partnership 
C)  Individual 
D)  All of the above are taxpayers. 
A)  C Corporation 
B)  Partnership 
C)  Individual 
D)  All of the above are taxpayers.

Question 18

The federal income tax is the dominant form of taxation by the federal government.

Accepted Answer

A) True 
 B)False

Question 19

Explain how returns are selected for audit.

Accepted Answer

The IRS uses both computers and experien

Question 20

In a limited liability partnership,a partner is not liable for his partner's acts of negligence or misconduct.

Accepted Answer

A) True 
 B)False

Arthur pays tax of $5,000 on taxable income of $50,000 while taxpayer Barbara pays tax of $12,000 on $120,000.The tax is a

All of the following are classified as flow-through entities for tax purposes except

If a taxpayer's total tax liability is $30,000,taxable income is $100,000,and economic income is $120,000,the average tax rate is 30 percent.

When returns are processed,they are scored to determine their potential for yielding additional tax revenues.This program is called

Jillian,a single individual,earns $230,000 in 2017 through her job as an accounting manager.What is her FICA tax?

A progressive tax rate structure is one where the rate of tax increases as the tax base increases.

The unified transfer tax system,comprised of the gift and estate taxes,is based upon the total property transfers an individual makes during lifetime and at death.

Organizing a corporation as an S Corporation results in a single level of taxation.

A proportional tax rate is one where the rate of the tax is the same for all taxpayers,regardless of income levels.

When new tax legislation is being considered by Congress

Which is not a component of tax practice?

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

The marginal tax rate is useful in tax planning because it measures the tax effect of a proposed transaction.

If a taxpayer's total tax liability is $4,000,taxable income is $20,000,and total economic income is $40,000,then the effective tax rate is 20 percent.

Generally,tax legislation is introduced first in the Senate and referred to the Senate Finance Committee.

The Senate equivalent of the House Ways and Means Committee is the Senate

Which of the following is not a taxpaying entity?

The federal income tax is the dominant form of taxation by the federal government.

Explain how returns are selected for audit.

In a limited liability partnership,a partner is not liable for his partner's acts of negligence or misconduct.

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters

Exam 1: An Introduction to Taxation

Arthur pays tax of $5,000 on taxable income of $50,000 while taxpayer Barbara pays tax of $12,000 on $120,000.The tax is a

All of the following are classified as flow-through entities for tax purposes except

If a taxpayer's total tax liability is $30,000,taxable income is $100,000,and economic income is $120,000,the average tax rate is 30 percent.

When returns are processed,they are scored to determine their potential for yielding additional tax revenues.This program is called

Jillian,a single individual,earns $230,000 in 2017 through her job as an accounting manager.What is her FICA tax?

A progressive tax rate structure is one where the rate of tax increases as the tax base increases.

The unified transfer tax system,comprised of the gift and estate taxes,is based upon the total property transfers an individual makes during lifetime and at death.

Organizing a corporation as an S Corporation results in a single level of taxation.

A proportional tax rate is one where the rate of the tax is the same for all taxpayers,regardless of income levels.

When new tax legislation is being considered by Congress

Which is not a component of tax practice?

Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs

The marginal tax rate is useful in tax planning because it measures the tax effect of a proposed transaction.

If a taxpayer's total tax liability is $4,000,taxable income is $20,000,and total economic income is $40,000,then the effective tax rate is 20 percent.

Generally,tax legislation is introduced first in the Senate and referred to the Senate Finance Committee.

The Senate equivalent of the House Ways and Means Committee is the Senate

Which of the following is not a taxpaying entity?

The federal income tax is the dominant form of taxation by the federal government.

Explain how returns are selected for audit.

In a limited liability partnership,a partner is not liable for his partner's acts of negligence or misconduct.

Determination of Tax

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, cost Recovery, amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Sec1231 and Recapture

Special Tax Computation Methods, tax Credits, and Payment of Tax

Tax Research

Corporations

Partnerships and S Corporations

Taxes and Investment Planning

Filters