1. Mrs. May is a citizen of Brazil but is a permanent resident of Orlando, Florida. -
CORRECT ANSWERU.S. has jurisdiction
2. Mrs. May is a citizen and resident of Brazil. She owns Manhattan real estate that
generates $100,000 net rental income annually. - CORRECT ANSWER U.S. has
jurisdiction
3. Mrs. May is a citizen and resident of Brazil. She owns no property and conducts
no business in the United States. - CORRECT ANSWER U.S. does not have
jurisdiction
4. Mrs. May is a U.S. citizen but is a permanent resident of São Paulo, Brazil. -
CORRECT ANSWER U.S. has jurisdiction
5. Mr. Tompkin is a U.S. citizen but has been a permanent resident of Belgium
since 1993. - CORRECT ANSWER U.S. has jurisdiction
6. Mr. Tompkin is a citizen and resident of Canada. He owns an apartment building
in Buffalo, New York, that generates $18,000 annual net rental income. -
CORRECT ANSWER U.S. has jurisdiction
7. Mr. Tompkin is a citizen of Singapore but is a permanent resident of St. Louis,
Missouri. - CORRECT ANSWER U.S. has jurisdiction
8. Mr. Tompkin, a citizen and resident of Greece, is a partner in Sophic Partnership,
which conducts business in 12 countries, including the United States. -
CORRECT ANSWER U.S. has jurisdiction
9. Which of the following is an example of an activity-based tax? - CORRECT
ANSWER A tax on business' net income
10. A sales tax can best be described as a(n): - CORRECT ANSWER Consumption
tax
11. What is the major difference between a sales tax and an excise tax? -
CORRECT ANSWER Sales taxes are imposed on the purchase of a wide variety
of items, while excise taxes are imposed on the purchase of a few specific items.
12. Which tax raises the most revenue for the federal government? - CORRECT
ANSWER Individual income tax
13. When did the federal income tax become a permanent tax? - CORRECT
ANSWER In 1913 when the Sixteenth Amendment to the U.S. Constitution was
ratified
14. Which type of tax is not levied by the federal government? - CORRECT
ANSWER General sales tax
, 15. Which of the following is/are not a primary source of authority for the tax law? -
CORRECT ANSWER All of these choices are primary sources of authority
16. Which of the following statements about the Internal Revenue Code is false? -
CORRECT ANSWER The Internal Revenue Code has not been amended since
1986.
17. How often does Congress amend the Internal Revenue Code? - CORRECT
ANSWER Constantly (at least once a year)
18. Which of the following is not considered administrative authority? - CORRECT
ANSWER Tax Court decisions
19. A revenue ruling is an example of: - CORRECT ANSWER Administrative
authority
20. Government J decides that it must increase its tax revenue. Which of the
strategies could result in more revenue? - CORRECT ANSWER All of these
strategies could result in more revenue for Government J.
21. The government of Nation C operated at a $32 billion deficit this year. The deficit
suggests that Nation C's tax system is: - CORRECT ANSWER Insufficient
22. The city of Belleview operated at an $865,000 surplus this year. The surplus
suggests that the municipal tax system is: - CORRECT ANSWER Sufficient
23. Which of the following describes a tax that meets the standard of convenience? -
CORRECT ANSWER All of these describe a convenient tax.
24. Which of the following taxes is most convenient for individuals (purchasers) to
pay? - CORRECT ANSWER Sales tax
25. Which of the following statements does not describe the classical standard of tax
efficiency? - CORRECT ANSWER An efficient tax encourages full employment.
26. The sales tax laws of many states exempt the purchase of groceries and
prescription drugs from tax. Such exemptions are intended to improve the: -
CORRECT ANSWER Equity of the tax
27. Vervet County levies a real property tax based on the following schedule. Which
type of rate structure does this tax use? - CORRECT ANSWER Regressive
28. Jurisdiction M imposes an individual income tax based on the following schedule.
Which type of rate structure does this tax use? - CORRECT ANSWER
Progressive
29. Congress originally enacted the federal estate and gift taxes to improve: -
CORRECT ANSWER Distributional justice
30. Mrs. Day structures a transaction to shift income from her sole proprietorship to
her grandson's business. This tax planning strategy may be taking advantage of
the: - CORRECT ANSWER Entity variable
CORRECT ANSWERU.S. has jurisdiction
2. Mrs. May is a citizen and resident of Brazil. She owns Manhattan real estate that
generates $100,000 net rental income annually. - CORRECT ANSWER U.S. has
jurisdiction
3. Mrs. May is a citizen and resident of Brazil. She owns no property and conducts
no business in the United States. - CORRECT ANSWER U.S. does not have
jurisdiction
4. Mrs. May is a U.S. citizen but is a permanent resident of São Paulo, Brazil. -
CORRECT ANSWER U.S. has jurisdiction
5. Mr. Tompkin is a U.S. citizen but has been a permanent resident of Belgium
since 1993. - CORRECT ANSWER U.S. has jurisdiction
6. Mr. Tompkin is a citizen and resident of Canada. He owns an apartment building
in Buffalo, New York, that generates $18,000 annual net rental income. -
CORRECT ANSWER U.S. has jurisdiction
7. Mr. Tompkin is a citizen of Singapore but is a permanent resident of St. Louis,
Missouri. - CORRECT ANSWER U.S. has jurisdiction
8. Mr. Tompkin, a citizen and resident of Greece, is a partner in Sophic Partnership,
which conducts business in 12 countries, including the United States. -
CORRECT ANSWER U.S. has jurisdiction
9. Which of the following is an example of an activity-based tax? - CORRECT
ANSWER A tax on business' net income
10. A sales tax can best be described as a(n): - CORRECT ANSWER Consumption
tax
11. What is the major difference between a sales tax and an excise tax? -
CORRECT ANSWER Sales taxes are imposed on the purchase of a wide variety
of items, while excise taxes are imposed on the purchase of a few specific items.
12. Which tax raises the most revenue for the federal government? - CORRECT
ANSWER Individual income tax
13. When did the federal income tax become a permanent tax? - CORRECT
ANSWER In 1913 when the Sixteenth Amendment to the U.S. Constitution was
ratified
14. Which type of tax is not levied by the federal government? - CORRECT
ANSWER General sales tax
, 15. Which of the following is/are not a primary source of authority for the tax law? -
CORRECT ANSWER All of these choices are primary sources of authority
16. Which of the following statements about the Internal Revenue Code is false? -
CORRECT ANSWER The Internal Revenue Code has not been amended since
1986.
17. How often does Congress amend the Internal Revenue Code? - CORRECT
ANSWER Constantly (at least once a year)
18. Which of the following is not considered administrative authority? - CORRECT
ANSWER Tax Court decisions
19. A revenue ruling is an example of: - CORRECT ANSWER Administrative
authority
20. Government J decides that it must increase its tax revenue. Which of the
strategies could result in more revenue? - CORRECT ANSWER All of these
strategies could result in more revenue for Government J.
21. The government of Nation C operated at a $32 billion deficit this year. The deficit
suggests that Nation C's tax system is: - CORRECT ANSWER Insufficient
22. The city of Belleview operated at an $865,000 surplus this year. The surplus
suggests that the municipal tax system is: - CORRECT ANSWER Sufficient
23. Which of the following describes a tax that meets the standard of convenience? -
CORRECT ANSWER All of these describe a convenient tax.
24. Which of the following taxes is most convenient for individuals (purchasers) to
pay? - CORRECT ANSWER Sales tax
25. Which of the following statements does not describe the classical standard of tax
efficiency? - CORRECT ANSWER An efficient tax encourages full employment.
26. The sales tax laws of many states exempt the purchase of groceries and
prescription drugs from tax. Such exemptions are intended to improve the: -
CORRECT ANSWER Equity of the tax
27. Vervet County levies a real property tax based on the following schedule. Which
type of rate structure does this tax use? - CORRECT ANSWER Regressive
28. Jurisdiction M imposes an individual income tax based on the following schedule.
Which type of rate structure does this tax use? - CORRECT ANSWER
Progressive
29. Congress originally enacted the federal estate and gift taxes to improve: -
CORRECT ANSWER Distributional justice
30. Mrs. Day structures a transaction to shift income from her sole proprietorship to
her grandson's business. This tax planning strategy may be taking advantage of
the: - CORRECT ANSWER Entity variable
