H&R BLOCK INCOME TAX COURSE
FINAL EXAM AND PRACTICE EXAM
QUESTIONS CURRENTLY TESTING
COMPLETE ACCURATE EXAM
QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+
If the cost of all property eligible for the 179
deduction during the year exceeds
$2,000,000, the deduction is reduced dollar
for dollar by the amount in excess of
$2,000,000. - ....ANSWER...$2,000,000
Limitation
The total amount expensed cannot exceed the
taxpayer's business income from all trades
or businesses. - ....ANSWER...Business
Income Limitation
,Special rules limiting the taxpayer's
deductible business, partnership, S
corporation, or real estate loss to cash
invested plus debt he is legally obligated to
pay and the adjusted basis of any property
contributed. - ....ANSWER...At-Risk Rules
Valuing inventory purchased during the year
at cost; that is, the invoice price less any
discounts plus transportation or other costs
incurred in acquiring the merchandise. -
....ANSWER...Cost Method of Inventory
Valuation
Beginning inventory plus direct purchases,
direct labor costs, and overhead costs less
withdrawals for personal use and ending
inventory. - ....ANSWER...Cost of Goods Sold
The law that provides for social security and
medicare benefits. This program is financed
,by payroll taxes imposed equally on the
employer and employee. - ....ANSWER...FICA
A combination of accounting methods,
usually of the cash and accrual methods. -
....ANSWER...Hybrid Method of Accounting
A list of articles of property. For income tax
purposes, inventory refers only to a list of
articles comprising stock in trade - articles
held for sale to customers in the regular
course of a trade or business. -
....ANSWER...Inventory
Inventory valuation considering the actual
cost or the replacement cost of merchandise
on the inventory date. - ....ANSWER...Lower of
Cost or Market Method of Inventory Valuation
A form of business in which two or more
persons join their money and skills in
, conducting the business as co-owners. -
....ANSWER...Partnership
A business controlled and operated by one
person. - ....ANSWER...Proprietorship
Taxpayers who work for themselves. They
decide when, how, and where to work, obtain
their own jobs or sales, pay their own
expenses, and receive social security and
medicare coverage through payment of self-
employment tax. - ....ANSWER...Self-
Employed Individuals
A business owned by one individual. -
....ANSWER...Sole Proprietorship
Profit or Loss From Business -
....ANSWER...Schedule C
FINAL EXAM AND PRACTICE EXAM
QUESTIONS CURRENTLY TESTING
COMPLETE ACCURATE EXAM
QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+
If the cost of all property eligible for the 179
deduction during the year exceeds
$2,000,000, the deduction is reduced dollar
for dollar by the amount in excess of
$2,000,000. - ....ANSWER...$2,000,000
Limitation
The total amount expensed cannot exceed the
taxpayer's business income from all trades
or businesses. - ....ANSWER...Business
Income Limitation
,Special rules limiting the taxpayer's
deductible business, partnership, S
corporation, or real estate loss to cash
invested plus debt he is legally obligated to
pay and the adjusted basis of any property
contributed. - ....ANSWER...At-Risk Rules
Valuing inventory purchased during the year
at cost; that is, the invoice price less any
discounts plus transportation or other costs
incurred in acquiring the merchandise. -
....ANSWER...Cost Method of Inventory
Valuation
Beginning inventory plus direct purchases,
direct labor costs, and overhead costs less
withdrawals for personal use and ending
inventory. - ....ANSWER...Cost of Goods Sold
The law that provides for social security and
medicare benefits. This program is financed
,by payroll taxes imposed equally on the
employer and employee. - ....ANSWER...FICA
A combination of accounting methods,
usually of the cash and accrual methods. -
....ANSWER...Hybrid Method of Accounting
A list of articles of property. For income tax
purposes, inventory refers only to a list of
articles comprising stock in trade - articles
held for sale to customers in the regular
course of a trade or business. -
....ANSWER...Inventory
Inventory valuation considering the actual
cost or the replacement cost of merchandise
on the inventory date. - ....ANSWER...Lower of
Cost or Market Method of Inventory Valuation
A form of business in which two or more
persons join their money and skills in
, conducting the business as co-owners. -
....ANSWER...Partnership
A business controlled and operated by one
person. - ....ANSWER...Proprietorship
Taxpayers who work for themselves. They
decide when, how, and where to work, obtain
their own jobs or sales, pay their own
expenses, and receive social security and
medicare coverage through payment of self-
employment tax. - ....ANSWER...Self-
Employed Individuals
A business owned by one individual. -
....ANSWER...Sole Proprietorship
Profit or Loss From Business -
....ANSWER...Schedule C
