Question 1

The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase.

Accepted Answer

A) True 
 B)False

Question 2

There is a Federal excise tax on hotel occupancy.

Accepted Answer

A) True 
 B)False

Question 3

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

Accepted Answer

A) True 
 B)False

Question 4

What is a severance tax? How productive can it be in terms of generating revenue?

Accepted Answer

A severance tax is one imposed when natu

Question 5

Using the choices provided below, show the justification for each provision of the tax law listed.
a.Economic considerations
b.Social considerations 
c.Equity considerations 
d.Both a.and b.
-A deduction for qualified tuition paid to obtain higher education.

Accepted Answer

The answer of Using the choices provided below, show the...

Question 6

Which of the following taxes is paid only by the employer?

Accepted Answer

A) FICA 
B) FUTA 
C) Social Security tax 
D) Medicare tax 
A) FICA 
B) FUTA 
C) Social Security tax 
D) Medicare tax

Question 7

Jason's business warehouse is destroyed by fire.Because the insurance proceeds exceed the basis of the property, a gain results.If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognized due to the application of the wherewithal to pay concept.

Accepted Answer

A) True 
 B)False

Question 8

Both economic and social considerations can be used to justify:

Accepted Answer

A) Favorable tax treatment for accident and health plans provided for employees and financed by employers. 
B) Disallowance of any deduction for expenditures deemed to be contrary to public policy (e.g., fines, penalties, illegal kickbacks, bribes to government officials). 
C) Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education. 
D) Allowance of a deduction for state and local income taxes paid. 
E) None of these. 
A) Favorable tax treatment for accident and health plans provided for employees and financed by employers. 
B) Disallowance of any deduction for expenditures deemed to be contrary to public policy (e.g., fines, penalties, illegal kickbacks, bribes to government officials). 
C) Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education. 
D) Allowance of a deduction for state and local income taxes paid. 
E) None of these.

Question 9

Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Accepted Answer

A) Nonrecognition of gain allowed for involuntary conversions. 
B) Net operating loss carryover provisions. 
C) Carryover of excess charitable contributions. 
D) Use of the installment method to recognize gain. 
E) Carryover of excess capital losses. 
A) Nonrecognition of gain allowed for involuntary conversions. 
B) Net operating loss carryover provisions. 
C) Carryover of excess charitable contributions. 
D) Use of the installment method to recognize gain. 
E) Carryover of excess capital losses.

Question 10

Like the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state.

Accepted Answer

A) True 
 B)False

Question 11

Taxes levied by both states and the Federal government include:

Accepted Answer

A) General sales tax. 
B) Customs duties. 
C) Hotel occupancy tax. 
D) Franchise tax. 
E) None of these. 
A) General sales tax. 
B) Customs duties. 
C) Hotel occupancy tax. 
D) Franchise tax. 
E) None of these.

Question 12

Using the choices provided below, show the justification for each provision of the tax law listed.
a.Economic considerations
b.Social considerations 
c.Equity considerations 
d.Both a.and b.
-Contributions to charitable organizations are deductible.

Accepted Answer

The answer of Using the choices provided below, show the...

Question 13

Because it is consistent with the wherewithal to pay concept, the tax law requires a seller to recognize a gain in the year the installment sale occurs.

Accepted Answer

A) True 
 B)False

Question 14

A use tax is imposed by:

Accepted Answer

A) The Federal government and all states. 
B) The Federal government and a majority of the states. 
C) All states but not the Federal government. 
D) Most of the states but not the Federal government. 
E) None of these. 
A) The Federal government and all states. 
B) The Federal government and a majority of the states. 
C) All states but not the Federal government. 
D) Most of the states but not the Federal government. 
E) None of these.

Question 15

Some states use their state income tax return as a means of collecting unpaid sales and use taxes.

Accepted Answer

A) True 
 B)False

Question 16

Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.

Accepted Answer

A) True 
 B)False

Question 17

A rationale for the installment sale method tax rule is:

Accepted Answer

A) Ability to pay. 
B) Equity and fairness. 
C) Simplicity. 
D) Revenue neutrality. 
A) Ability to pay. 
B) Equity and fairness. 
C) Simplicity. 
D) Revenue neutrality.

Question 18

Provisions in the tax law that promote energy conservation and more use of alternative (nonfossil) fuels can be justified by:

Accepted Answer

A) Political considerations. 
B) Economic and social considerations. 
C) Promoting administrative feasibility. 
D) Encouragement of small business. 
E) None of these. 
A) Political considerations. 
B) Economic and social considerations. 
C) Promoting administrative feasibility. 
D) Encouragement of small business. 
E) None of these.

Question 19

Sales made by mail order are not exempt from the application of a general sales (or use) tax.

Accepted Answer

A) True 
 B)False

Question 20

Mona inherits her mother's personal residence, which she converts to a furnished rental house.These changes should affect the amount of ad valorem property taxes levied on the properties.

Accepted Answer

A) True 
 B)False

The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase.

There is a Federal excise tax on hotel occupancy.

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

What is a severance tax? How productive can it be in terms of generating revenue?

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -A deduction for qualified tuition paid to obtain higher education.

Which of the following taxes is paid only by the employer?

Jason's business warehouse is destroyed by fire.Because the insurance proceeds exceed the basis of the property, a gain results.If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognized due to the application of the wherewithal to pay concept.

Both economic and social considerations can be used to justify:

Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Like the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state.

Taxes levied by both states and the Federal government include:

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -Contributions to charitable organizations are deductible.

Because it is consistent with the wherewithal to pay concept, the tax law requires a seller to recognize a gain in the year the installment sale occurs.

A use tax is imposed by:

Some states use their state income tax return as a means of collecting unpaid sales and use taxes.

Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.

A rationale for the installment sale method tax rule is:

Provisions in the tax law that promote energy conservation and more use of alternative (nonfossil) fuels can be justified by:

Sales made by mail order are not exempt from the application of a general sales (or use) tax.

Mona inherits her mother's personal residence, which she converts to a furnished rental house.These changes should affect the amount of ad valorem property taxes levied on the properties.

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Individuals As the Taxpayer

Individuals: Income, Deductions, and Credits

Individuals As Employees and Proprietors

Corporations: Organization, Capital Structure, and Operating Rules

Corporations: Earnings and Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and the Alternative Minimum Tax

Comparative Forms of Doing Business

Filters

Exam 1: Introduction to Taxation

The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase.

There is a Federal excise tax on hotel occupancy.

A tax cut enacted by Congress that contains a sunset provision will make the tax cut temporary.

What is a severance tax? How productive can it be in terms of generating revenue?

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -A deduction for qualified tuition paid to obtain higher education.

Which of the following taxes is paid only by the employer?

Jason's business warehouse is destroyed by fire.Because the insurance proceeds exceed the basis of the property, a gain results.If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognized due to the application of the wherewithal to pay concept.

Both economic and social considerations can be used to justify:

Which, if any, of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Like the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state.

Taxes levied by both states and the Federal government include:

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -Contributions to charitable organizations are deductible.

Because it is consistent with the wherewithal to pay concept, the tax law requires a seller to recognize a gain in the year the installment sale occurs.

A use tax is imposed by:

Some states use their state income tax return as a means of collecting unpaid sales and use taxes.

Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.

A rationale for the installment sale method tax rule is:

Provisions in the tax law that promote energy conservation and more use of alternative (nonfossil) fuels can be justified by:

Sales made by mail order are not exempt from the application of a general sales (or use) tax.

Mona inherits her mother's personal residence, which she converts to a furnished rental house.These changes should affect the amount of ad valorem property taxes levied on the properties.

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Individuals As the Taxpayer

Individuals: Income, Deductions, and Credits

Individuals As Employees and Proprietors

Corporations: Organization, Capital Structure, and Operating Rules

Corporations: Earnings and Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and the Alternative Minimum Tax

Comparative Forms of Doing Business

Filters