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Advanced Tax C239 test questions with 100- correct answers.
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Advanced Tax C239 test questions with 100- correct answers.
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Advanced TaxC239 test
questions with
100% correct
answers
What qualifies as a tax? - answer Is to fund
the government agencies that's required,
imposed by a government and not tied
directly to the benefit received by the
taxpayer.
Earmarked tax - answer a tax that is
assessed for a specific purpose
Tax base - answer Is the item being taxed x
the tax rate
,Flat tax - answer A tax in which a single tax
rate is applied throughout the tax base
Graduated taxes - answer taxes in which the
tax base is divided into a series of monetary
amounts, or brackets, where each successive
bracket is taxed at a different (gradually
higher or gradually lower) percentage rate.
Marginal tax rate(MTR) - answer the tax rate
that applies to the next additional increment
of a taxpayer's income (or to deductions).
What is the marginal tax rate calculation? -
answer Tax (new total tax - old tax) / Taxable
income (new taxable income - old taxable
income)
What is the average tax rate calculation? -
answer Total tax / Taxable income
, Average tax rate - answer the taxpayer's
average level of taxation on each dollar of
taxable income
What is the effective tax rate calculation? -
answer = Total tax / Total income
Proportional tax rate structure - answer also
known as a flat tax, this tax rate structure
imposes a constant tax rate throughout the
tax base. As the tax base increases, the
taxes paid increase proportionally.
Progressive tax rate structure - answer
imposes an increasing marginal tax rate as
the tax base increases
Regressive tax rate structure - answer a tax
rate structure that imposes a decreasing
marginal tax rate as the tax base increases.
As the tax base increases, the taxes paid
increase, but the marginal tax rate
decreases.
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