Question 1

In preparing an income tax return, the use of a client's estimates is not permitted.

Accepted Answer

A) True 
 B)False

Question 2

Regarding proper ethical guidelines, which (if any) of the following is correct?

Accepted Answer

A) The use of client estimates in preparing a return may be acceptable. 
B) Under no circumstances should a question on a tax return be left unanswered. 
C) If a client has made a mistake in a prior year's return and refuses to correct it, you should withdraw from the engagement. 
D) If the exact amount of a deduction is not certain so as to increase the appearance of greater certainty. 
E) None of these. 
A) The use of client estimates in preparing a return may be acceptable. 
B) Under no circumstances should a question on a tax return be left unanswered. 
C) If a client has made a mistake in a prior year's return and refuses to correct it, you should withdraw from the engagement. 
D) If the exact amount of a deduction is not certain so as to increase the appearance of greater certainty. 
E) None of these.

Question 3

In an office audit, the audit by the IRS takes place at the office of the taxpayer.

Accepted Answer

A) True 
 B)False

Question 4

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
a.Deferral of gains from involuntary conversions
b.Carryback and carryforward of net operating losses
c."No change" is one possible result
d.State income tax applied to visiting nonresident
e.IRS special agent
f.Undoing the "piggyback" result
g.Ideal budget goal as to new tax legislation
h.Every state that has a general sales tax has one
i.Imposed by all states and the Federal government
j.Imposed by some states but not the Federal government
k.Imposed only by the Federal government
l.No correct match provided
-Mitigation of the annual accounting period concept

Accepted Answer

The answer of Match the statements that relate to each...

Question 5

Not all of the states that impose a general sales tax also have a use tax.

Accepted Answer

A) True 
 B)False

Question 6

Which, if any, is not one of Adam Smith's canons (principles) of taxation?

Accepted Answer

A) Economy in collection 
B) Certainty 
C) Convenience of payment 
D) Simplicity 
E) Equality 
A) Economy in collection 
B) Certainty 
C) Convenience of payment 
D) Simplicity 
E) Equality

Question 7

In cases of doubt, courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Accepted Answer

A) True 
 B)False

Question 8

No state has offered an income tax amnesty program more than once.

Accepted Answer

A) True 
 B)False

Question 9

Under Clint's will, all of his property passes to either the Lutheran Church or to his wife. No Federal estate tax will be due on Clint's death in 2017.

Accepted Answer

A) True 
 B)False

Question 10

If a taxpayer files early (i.e., before the due date of the return), the statute of limitations on assessments begins on the date the return is filed.

Accepted Answer

A) True 
 B)False

Question 11

A lack of compliance in the payment of use taxes can be resolved by several means. In this regard, comment on the following:
a.Registration of automobiles.
b.Reporting of Internet purchases on state income tax returns.

Accepted Answer

The answer of A lack of compliance in the payment...

Question 12

Burt and Lisa are married and live in a common law state. Burt wants to make gifts to their four children in 2017. What is the maximum amount of the annual exclusion they will be allowed for these gifts?

Accepted Answer

A) $14,000. 
B) $28,000. 
C) $56,000. 
D) $112,000. 
E) None of these. 
A) $14,000. 
B) $28,000. 
C) $56,000. 
D) $112,000. 
E) None of these.

Question 13

Which, if any, of the following statements best describes the history of the Federal income tax?

Accepted Answer

A) It did not exist during the Civil War. 
B) The Federal income tax on corporations was held by the U.S. Supreme Court to be allowable under the U.S. Constitution. 
C) The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution. 
D) Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution. 
E) None of these. 
A) It did not exist during the Civil War. 
B) The Federal income tax on corporations was held by the U.S. Supreme Court to be allowable under the U.S. Constitution. 
C) The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution. 
D) Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution. 
E) None of these.

Question 14

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
a.Deferral of gains from involuntary conversions
b.Carryback and carryforward of net operating losses
c."No change" is one possible result
d.State income tax applied to visiting nonresident
e.IRS special agent
f.Undoing the "piggyback" result
g.Ideal budget goal as to new tax legislation
h.Every state that has a general sales tax has one
i.Imposed by all states and the Federal government
j.Imposed by some states but not the Federal government
k.Imposed only by the Federal government
l.No correct match provided
-Revenue Agent's Report (RAR)

Accepted Answer

The answer of Match the statements that relate to each...

In preparing an income tax return, the use of a client's estimates is not permitted.

Regarding proper ethical guidelines, which (if any) of the following is correct?

In an office audit, the audit by the IRS takes place at the office of the taxpayer.

Not all of the states that impose a general sales tax also have a use tax.

Which, if any, is not one of Adam Smith's canons (principles) of taxation?

In cases of doubt, courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

No state has offered an income tax amnesty program more than once.

Under Clint's will, all of his property passes to either the Lutheran Church or to his wife. No Federal estate tax will be due on Clint's death in 2017.

If a taxpayer files early (i.e., before the due date of the return), the statute of limitations on assessments begins on the date the return is filed.

A lack of compliance in the payment of use taxes can be resolved by several means. In this regard, comment on the following: a.Registration of automobiles. b.Reporting of Internet purchases on state income tax returns.

Burt and Lisa are married and live in a common law state. Burt wants to make gifts to their four children in 2017. What is the maximum amount of the annual exclusion they will be allowed for these gifts?

Which, if any, of the following statements best describes the history of the Federal income tax?

Working With the Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters

Exam 1: An Introduction to Taxation and Understanding Federal Tax Law

In preparing an income tax return, the use of a client's estimates is not permitted.

Regarding proper ethical guidelines, which (if any) of the following is correct?

In an office audit, the audit by the IRS takes place at the office of the taxpayer.

Not all of the states that impose a general sales tax also have a use tax.

Which, if any, is not one of Adam Smith's canons (principles) of taxation?

In cases of doubt, courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

No state has offered an income tax amnesty program more than once.

Under Clint's will, all of his property passes to either the Lutheran Church or to his wife. No Federal estate tax will be due on Clint's death in 2017.

If a taxpayer files early (i.e., before the due date of the return), the statute of limitations on assessments begins on the date the return is filed.

A lack of compliance in the payment of use taxes can be resolved by several means. In this regard, comment on the following: a.Registration of automobiles. b.Reporting of Internet purchases on state income tax returns.

Burt and Lisa are married and live in a common law state. Burt wants to make gifts to their four children in 2017. What is the maximum amount of the annual exclusion they will be allowed for these gifts?

Which, if any, of the following statements best describes the history of the Federal income tax?

Working With the Tax Law

Tax Formula and Tax Determination; an Overview of Property Transactions

Gross Income: Concepts and Inclusions

Gross Income: Exclusions

Deductions and Losses: in General

Deductions and Losses: Certain Business Expenses and Losses

Depreciation, Cost Recovery, Amortization, and Depletion

Deductions: Employee and Self-Employed-Related Expenses

Deductions and Losses: Certain Itemized Deductions

Investor Losses

Alternative Minimum Tax

Tax Credits and Payment Procedures

Property Transactions: Determination of Gain or Loss and Basis Considerations

Property Transactions: Nontaxable Exchanges

Property Transactions: Capital Gains and Losses

Property Transactions: 1231 and Recapture Provisions

Accounting Periods and Methods

Deferred Compensation

Corporations and Partnerships

Filters