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ACCT 3013 EXAM 1 QUESTIONS AND VERIFIED ANSWERS
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ACCT 3013 EXAM 1 QUESTIONS AND VERIFIED ANSWERS...
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Payment of a tax entitles the payer to a specific good or service from thegovernment. - ANSWER false
The U.S. government has jurisdiction to tax individuals who are not U.S.
citizens or permanent U.S. residents but who earn income from a source
within the United States. - ANSWER true
The federal government collects more revenue from the corporate
income tax than from the individual income tax. - ANSWER false
The Internal Revenue Code is written by the Internal Revenue Service. -
ANSWER false
Acme Incorporated's property taxes increased by $65,000 this year. As a
result, Acme increased the sale prices of its products to generate
$65,000 more revenue. Who bears the incidence of the corporate tax
increase? - ANSWER Acme's customers
Mrs. King is a U.S. citizen who permanently resides in South Africa.
Which of the following statements is true? - ANSWER The US
government has the jurisdiction to tax Mrs. King
Which of the following statements concerning property taxes is false? -
ANSWER None of these are false
(property taxes are ad valorem taxes, are the primary source of revenue
for local governments, and can be levied on realty or personalty)
What gives the federal government the right to impose a tax on
individual and corporate income? - ANSWER 16th amendment to the
Constitution
Which of the following statements about Treasury regulations is false? -
ANSWER Treasury regulations are part of statutory law.
, (treasury regulations are written to interpret and explain the IRC and a
federal court can invalidate a treasury regulation if the court concludes
that the regulation incorrectly interprets the IRC are both true)
Which of the following sources of tax law carries the most authority? -
ANSWER Supreme Court decision
A convenient tax has low compliance costs for taxpayers and low
collection and enforcement costs for the government. - ANSWER true
Tax systems with regressive rate structures result in a proportionally
heavier tax burden on persons with smaller tax bases. - ANSWER true
If a tax has a proportionate rate structure, a taxpayer's marginal rate and
average rate are equal. - ANSWER true
Government officials of Country Z estimate that next year's public
programs will cost $19 million but that tax revenues will be only $15
million. Which of the following statements is false? - ANSWER Country
Z's tax system is sufficient.
(it is engaging in deficit spendings, could balance its budget by
eliminating a 4mil program, and if it must borrow 4mil for public
programs, the national debt will increase by 4mil)
The government of Nation C operated at a $32 billion deficit this year.
The deficit suggests that Nation C's tax system is: - ANSWER
insufficient
Jurisdiction F levies a 10% excise tax on the purchase of golf carts. The
annual revenue from this tax averages $800,000 (10% * $8 million
average annual golf cart purchases). Jurisdiction F is considering raising
the tax rate to 12%. Which of the following statements is true? -
ANSWER based on a static forecast, the rate will increase revenue by
160,000
Which of the following statements regarding a convenient tax is false? -
ANSWER A conveninet tax should have a method of collection that
offers maximum opportunity for noncompliance.
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