ACCT 330 Taxation (KU) – Exam 1 Questions and Correct Answers

ACCT 330 - KU Exam 1 Questions
And Correct Answers


Tax

Compulsory payment to support the operation of government.




Taxpayers

Any person required by law to pay taxes




Incidence

The ultimate economic burden of the tax.




Jurisdiction

The right of government to levy tax on a person or organization.




When are U.S. citizens/resident aliens taxed?

Where are or not they live in the U.S. they are taxed on worldwide income.

,When are non-resident aliens taxed?

Only taxed on U.S. earned income




Basic Tax Structure

Taxes are pervasive and dynamic

T=rxB




Flat rate

a single percentage that applies to the entire tax base.




Graduated rate

Different percentage rate for different tax brackets.




Progressive rate structure

Higher rates apply to a higher base




Proportional rate structure

Same rate applies to all base levels

, Regressive rate structure

Lower tax rates apply to higher base




Transaction based tax examples

-sales tax

-estate tax

-excise tax




Activity based taxes

This tax is imposed based on ongoing activity.




Transaction based taxes

triggered by a transaction




Activity based tax example

-income




Earmarked taxes