Question 1

Briefly identify and define the two principles that guide the determination of who will be taxed by a specific jurisdiction.

Accepted Answer

The two principles that are used to dete

Question 2

Explain the two acceptable methods for recognizing income on long-term contracts.

Accepted Answer

The two acceptable methods of recognizin

Question 3

Explain the difference in tax treatment of child support and alimony.

Accepted Answer

Child support is not deductibl

Question 4

Which of the following is an application of the wherewithal-to-pay concept?

Accepted Answer

A) Percentage-of-completion 
B) Hybrid method of accounting 
C) Installment method 
D) Accrual method of accounting 
A) Percentage-of-completion 
B) Hybrid method of accounting 
C) Installment method 
D) Accrual method of accounting

Question 5

A calendar year always ends on December 31.

Accepted Answer

A) True 
 B)False

Question 6

All of the following result in nontaxable income except:

Accepted Answer

A) Stock dividend 
B) Interest on municipal bonds 
C) Capital gain distribution reinvested in the mutual fund 
D) Distribution identified as a return of capital 
A) Stock dividend 
B) Interest on municipal bonds 
C) Capital gain distribution reinvested in the mutual fund 
D) Distribution identified as a return of capital

Briefly identify and define the two principles that guide the determination of who will be taxed by a specific jurisdiction.

Explain the two acceptable methods for recognizing income on long-term contracts.

Explain the difference in tax treatment of child support and alimony.

Which of the following is an application of the wherewithal-to-pay concept?

A calendar year always ends on December 31.

All of the following result in nontaxable income except:

Introduction to Taxation

The Tax Practice Environment

Employee Compensation

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Tax-Deferred Exchanges

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Income Taxation of Individuals

Wealth Transfer Taxes

Filters

Exam 3: Determining Gross Income

Briefly identify and define the two principles that guide the determination of who will be taxed by a specific jurisdiction.

Explain the two acceptable methods for recognizing income on long-term contracts.

Explain the difference in tax treatment of child support and alimony.

Which of the following is an application of the wherewithal-to-pay concept?

A calendar year always ends on December 31.

All of the following result in nontaxable income except:

Introduction to Taxation

The Tax Practice Environment

Employee Compensation

Business Expenses

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Tax-Deferred Exchanges

Taxation of Corporations

Sole Proprietorships and Flow-Through Entities

Income Taxation of Individuals

Wealth Transfer Taxes

Filters