Test Bank South-Western Federal Taxation 2025: Corporations, Partnerships, Estates and Trusts by Nellen A++

Created by: Irfan Ali


Test Bank South-Western Federal Taxation 2025:
Corporations, Partnerships, Estates and Trusts by
Nellen A++
Chapter 01: Understanding and Working with the Federal Tax Law
True / False


1. Many states have balanced budgets because laws or constitutional amendments preclude
deficit spending.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1 01 - LO: 1-01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - TX - AICPA: FN-Measurement
United States - AK - AICPA: FN-Research
KEYWORDS: Bloom's: Remember
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM


2. The U.S. Federal government has a provision in the Constitution that precludes deficit
spending.
a. True
b. False

,Created by: Irfan Ali


ANSWER: False
RATIONALE:There is no such provision, and the national debt continues to grow.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1 01 - LO: 1-01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - AK - AICPA: FN-Measurement
KEYWORDS: Bloom's: Remember
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM


3. Revenue-neutral tax laws reduce deficits.
a. True
b. False
ANSWER: False
RATIONALE:They do not reduce deficits but do not aggravate the problem.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False




HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-01 - LO: 1-01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - AK - AICPA: FN-Measurement
KEYWORDS: Bloom's: Remember

,Created by: Irfan Ali


OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM


4. Longer class lives for depreciable property and the required use of the straight-line
method of depreciation would likely dampen the tax incentive for purchasing capital assets.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1 02 - LO: 1-02
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - TX - AICPA: FN-Reporting
United States - AK - AICPA: FN-Research
KEYWORDS: Bloom's: Remember
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM


5. The Internal Revenue Code is a compilation of Federal tax legislation that appears in
Title 26 of the United States Code.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False

, Created by: Irfan Ali


HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1 02 - LO: 1-02
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - AK - AICPA: FN-Research
United States - TX - FN-Reporting
KEYWORDS: Bloom's: Remember
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM


6. The favorable treatment of research and development expenses (via amortization
deductions and tax credits) is one means of controlling the economy.
a. True
b. False
ANSWER: False
RATIONALE:This favorable treatment encourages certain activities (e.g., fostering
technological progress). It does not control the economy.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1 02 - LO: 1-02
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - AK - AICPA: FN-Measurement
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM