KU ACCT 330 EXAM 1 QUESTIONS AND ANSWERS
GRADED A+
Taxes
Compulsory payments to support the cost of operating government
Characteristics of taxes
-not a punishment
-not entitled by it
Taxpayers
any persons required by law to pay taxes
who are the "persons" referred to when paying taxes
people, corporations, and other business entities
Incidence
,ultimate economic burden of the tax
Jurisdiction
The right of a government to levy tax on a specific person, org, etc.
Types of jurisdictions
city
state
federal
How do jurisdictions exist?
due to a link between the government and the taxpayer
What are the types of jurisdiction links
physical link
economic link
citizenship link
,physical link
where the taxpayer lives
economic link
some form of economic tax is present
citizenship link
only apply to citizens of that government/country
Who is the government able to tax
US citizens
Resident aliens
Non-resident aliens
Resident aliens
-have a green card
-taxed on all worldwide income
, non-resident aliens
-have other form of legal way to live in the US
-taxed only on US-sourced income
US citizens
-taxed on whether live on US soil or not
-taxed on all worldwide income
Types of tax rates
-flat rate
-graduated rate
flat rate
single %
graduated rate
different amounts subject to different %
GRADED A+
Taxes
Compulsory payments to support the cost of operating government
Characteristics of taxes
-not a punishment
-not entitled by it
Taxpayers
any persons required by law to pay taxes
who are the "persons" referred to when paying taxes
people, corporations, and other business entities
Incidence
,ultimate economic burden of the tax
Jurisdiction
The right of a government to levy tax on a specific person, org, etc.
Types of jurisdictions
city
state
federal
How do jurisdictions exist?
due to a link between the government and the taxpayer
What are the types of jurisdiction links
physical link
economic link
citizenship link
,physical link
where the taxpayer lives
economic link
some form of economic tax is present
citizenship link
only apply to citizens of that government/country
Who is the government able to tax
US citizens
Resident aliens
Non-resident aliens
Resident aliens
-have a green card
-taxed on all worldwide income
, non-resident aliens
-have other form of legal way to live in the US
-taxed only on US-sourced income
US citizens
-taxed on whether live on US soil or not
-taxed on all worldwide income
Types of tax rates
-flat rate
-graduated rate
flat rate
single %
graduated rate
different amounts subject to different %
