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ACCT 3221 Income Tax Chapters 1-7 Test Bank TEST FINAL
EXAM AND PRACTICE EXAM 2026-2027 BANK 2 VERSIONS
QUESTIONS WITH DETAILED VERIFIED ANSWERS EXAM
QUESTIONS WILL COME FROM HERE (100% CORRECT
ANSWERS A+ GRADED
83. Which, if any, of the following statements best describes the history
of the Federal income tax?
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. - ANSWERS--b
84. Which, if any, is not one of Adam Smith's canons of taxation?
a. Economy
b. Certainty
c. Convenience
d. Simplicity
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e. Equality - ANSWERS--d
85. Which, if any, of the following taxes are proportional (rather than
progressive)?
a. State general sales tax
b. Federal corporate income tax
c. Federal estate tax
d. Federal gift tax
e. All of these - ANSWERS--a
86. Which, if any, of the following transactions will increase a taxing
jurisdiction's revenue from the ad valorem tax imposed on real estate?
a. A resident dies and leaves his farm to his church.
b. A large property owner issues a conservation easement as to some of
her land.
c. A tax holiday issued 10 years ago has expired.
d. A bankrupt motel is acquired by the Red Cross and is to be used to
provide housing for homeless persons.
e. None of these. - ANSWERS--c
87. Which, if any, of the following transactions will decrease a taxing
jurisdiction's ad valorem tax revenue imposed on real estate?
a. A tax holiday is granted to an out-of-state business that is searching
for a new factory site.
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b. An abandoned church is converted to a restaurant.
c. A public school is razed and turned into a city park.
d. A local university sells a dormitory that will be converted for use as
an apartment building.
e. None of these. - ANSWERS--a
88. Which, if any, of the following is a typical characteristic of an ad
valorem tax on personalty?
a. Taxpayer compliance is greater for personal use property than for
business use property.
b. The tax on automobiles sometimes considers the age of the vehicle.
c. Most states impose a tax on intangibles.
d. The tax on intangibles generates considerable revenue since it is
difficult for taxpayers to avoid.
e. None of these. - ANSWERS--b
89. Federal excise taxes that are no longer imposed include:
a. Tax on air travel.
b. Tax on wagering.
c. Tax on the manufacture of sporting equipment.
d. Tax on alcohol.
e. None of these. - ANSWERS--e
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90. Taxes not imposed by the Federal government include:
a. Tobacco excise tax.
b. Customs duties (tariffs on imports).
c. Tax on rent cars.
d. Gas guzzler tax.
e. None of these. - ANSWERS--c
91. Taxes levied by both states and the Federal government include:
a. General sales tax.
b. Custom duties.
c. Hotel occupancy tax.
d. Franchise tax.
e. None of these. - ANSWERS--e
92. Taxes levied by all states include:
a. Tobacco excise tax.
b. Individual income tax.
c. Inheritance tax.
d. General sales tax.
e. None of these. - ANSWERS--a
93. A use tax is imposed by:
ACCT 3221 Income Tax Chapters 1-7 Test Bank TEST FINAL
EXAM AND PRACTICE EXAM 2026-2027 BANK 2 VERSIONS
QUESTIONS WITH DETAILED VERIFIED ANSWERS EXAM
QUESTIONS WILL COME FROM HERE (100% CORRECT
ANSWERS A+ GRADED
83. Which, if any, of the following statements best describes the history
of the Federal income tax?
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. - ANSWERS--b
84. Which, if any, is not one of Adam Smith's canons of taxation?
a. Economy
b. Certainty
c. Convenience
d. Simplicity
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e. Equality - ANSWERS--d
85. Which, if any, of the following taxes are proportional (rather than
progressive)?
a. State general sales tax
b. Federal corporate income tax
c. Federal estate tax
d. Federal gift tax
e. All of these - ANSWERS--a
86. Which, if any, of the following transactions will increase a taxing
jurisdiction's revenue from the ad valorem tax imposed on real estate?
a. A resident dies and leaves his farm to his church.
b. A large property owner issues a conservation easement as to some of
her land.
c. A tax holiday issued 10 years ago has expired.
d. A bankrupt motel is acquired by the Red Cross and is to be used to
provide housing for homeless persons.
e. None of these. - ANSWERS--c
87. Which, if any, of the following transactions will decrease a taxing
jurisdiction's ad valorem tax revenue imposed on real estate?
a. A tax holiday is granted to an out-of-state business that is searching
for a new factory site.
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b. An abandoned church is converted to a restaurant.
c. A public school is razed and turned into a city park.
d. A local university sells a dormitory that will be converted for use as
an apartment building.
e. None of these. - ANSWERS--a
88. Which, if any, of the following is a typical characteristic of an ad
valorem tax on personalty?
a. Taxpayer compliance is greater for personal use property than for
business use property.
b. The tax on automobiles sometimes considers the age of the vehicle.
c. Most states impose a tax on intangibles.
d. The tax on intangibles generates considerable revenue since it is
difficult for taxpayers to avoid.
e. None of these. - ANSWERS--b
89. Federal excise taxes that are no longer imposed include:
a. Tax on air travel.
b. Tax on wagering.
c. Tax on the manufacture of sporting equipment.
d. Tax on alcohol.
e. None of these. - ANSWERS--e
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90. Taxes not imposed by the Federal government include:
a. Tobacco excise tax.
b. Customs duties (tariffs on imports).
c. Tax on rent cars.
d. Gas guzzler tax.
e. None of these. - ANSWERS--c
91. Taxes levied by both states and the Federal government include:
a. General sales tax.
b. Custom duties.
c. Hotel occupancy tax.
d. Franchise tax.
e. None of these. - ANSWERS--e
92. Taxes levied by all states include:
a. Tobacco excise tax.
b. Individual income tax.
c. Inheritance tax.
d. General sales tax.
e. None of these. - ANSWERS--a
93. A use tax is imposed by:
