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South-Western Federal Taxation Comprehensive, 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
Taxation as distinguished from police power and power of eminent
domain.
A. Property is taken to promote the general welfare.
B. Maybe exercised only by the government.
C. Operates upon the whole citizenry.
D. There is generally no limit as to the amount that may be imposed -
ANSWERS--D
The following are constitutional limitations, except
A. No imprisonment for non-payment of poll tax.
B. Non-impairment of the obligation of contracts.
C. Rule of uniformity and equity in taxation.
D. Exemption from income tax of charitable institutions, cemeteries,
churches,
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personage or convents appurtenant thereto, as well as all lands,
buildings and
improvements actually, directly and exclusively used for religious,
charitable and
educational purposes. - ANSWERS--D
Which of the following statements is correct?
A. The President is authorized to increase or decrease national internal
revenue tax rates.
B. One of the nature of taxation is the reciprocal duties of protection
and support between
the state and subjects thereof.
C. Every sovereign government has the inherent power to tax.
D. Income tax in an indirect tax - ANSWERS--C
A tax must be imposed for public purpose. Which of the following is not
a public purpose?
A. National defense
B. Public education
C. Improvement of the sugar and coconut industries.
D. Improvement of a subdivision road - ANSWERS--D
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Which is not an essential characteristic of a tax?
A. It is unlimited as to amount.
B. It is payable in money.
C. It is proportionate in character.
D. It is an enforced contribution - ANSWERS--A
Special assessment is an enforced proportional contribution from
owners of land especially benefited by public improvement. Which one
of the following is not considered as one of its characteristics?
A. It is levied on land.
B. It is based on the government's need of money to support its
legitimate objectives.
C. It is not a personal liability of the persons assessed.
D. It is based solely on the benefit derived by the owners of the land. -
ANSWERS--B
It is the privilege of not being imposed a financial obligation to which
others are subject.
A. Tax incentive
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B. Tax exemption
C. Tax amnesty
D. Tax credit - ANSWERS--B
As to scope of the legislative power to tax, which is not correct?
A. Where there are no constitutional restrictions, and provided the
subjects are within the territorial jurisdiction of the state, Congress has
unlimited discretion as to the persons, property or occupations to be
taxed.
B. In the absence of any constitutional prohibition, Congress has the
right to levy a tax of any amount it sees fit.
C. The discretion of Congress in imposing taxes extends to the mode,
method or kind of tax, unless restricted by the constitution.
D. The sole arbiter of the purpose or which taxes shall be levied is
Congress, provided
the purpose is public and the courts may not review the levy of the tax
to determine
whether or not the purpose is public - ANSWERS--D
Which of the following is a nature of taxation?
A. The power is granted by legislative action.
B. It is essentially an administrative function.
C. It is generally payable in money.
South-Western Federal Taxation Comprehensive, 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
Taxation as distinguished from police power and power of eminent
domain.
A. Property is taken to promote the general welfare.
B. Maybe exercised only by the government.
C. Operates upon the whole citizenry.
D. There is generally no limit as to the amount that may be imposed -
ANSWERS--D
The following are constitutional limitations, except
A. No imprisonment for non-payment of poll tax.
B. Non-impairment of the obligation of contracts.
C. Rule of uniformity and equity in taxation.
D. Exemption from income tax of charitable institutions, cemeteries,
churches,
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personage or convents appurtenant thereto, as well as all lands,
buildings and
improvements actually, directly and exclusively used for religious,
charitable and
educational purposes. - ANSWERS--D
Which of the following statements is correct?
A. The President is authorized to increase or decrease national internal
revenue tax rates.
B. One of the nature of taxation is the reciprocal duties of protection
and support between
the state and subjects thereof.
C. Every sovereign government has the inherent power to tax.
D. Income tax in an indirect tax - ANSWERS--C
A tax must be imposed for public purpose. Which of the following is not
a public purpose?
A. National defense
B. Public education
C. Improvement of the sugar and coconut industries.
D. Improvement of a subdivision road - ANSWERS--D
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Which is not an essential characteristic of a tax?
A. It is unlimited as to amount.
B. It is payable in money.
C. It is proportionate in character.
D. It is an enforced contribution - ANSWERS--A
Special assessment is an enforced proportional contribution from
owners of land especially benefited by public improvement. Which one
of the following is not considered as one of its characteristics?
A. It is levied on land.
B. It is based on the government's need of money to support its
legitimate objectives.
C. It is not a personal liability of the persons assessed.
D. It is based solely on the benefit derived by the owners of the land. -
ANSWERS--B
It is the privilege of not being imposed a financial obligation to which
others are subject.
A. Tax incentive
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B. Tax exemption
C. Tax amnesty
D. Tax credit - ANSWERS--B
As to scope of the legislative power to tax, which is not correct?
A. Where there are no constitutional restrictions, and provided the
subjects are within the territorial jurisdiction of the state, Congress has
unlimited discretion as to the persons, property or occupations to be
taxed.
B. In the absence of any constitutional prohibition, Congress has the
right to levy a tax of any amount it sees fit.
C. The discretion of Congress in imposing taxes extends to the mode,
method or kind of tax, unless restricted by the constitution.
D. The sole arbiter of the purpose or which taxes shall be levied is
Congress, provided
the purpose is public and the courts may not review the levy of the tax
to determine
whether or not the purpose is public - ANSWERS--D
Which of the following is a nature of taxation?
A. The power is granted by legislative action.
B. It is essentially an administrative function.
C. It is generally payable in money.
