Exam (elaborations)
Test Bank For Essentials of Federal Taxation 11th Ed by Brian Spilker
- Module
- Federal Taxation - Test Bank
- Institution
- Federal Taxation - Test Bank
Highly Rated By Students
[Show more]
Content preview
,Essentials of Federal Taxation, 11e (Spilker)Chapter 1 An Introduction to Tax
1) Taxes influence many types of business decisions but generally do not influence personal
decisions.
Answer: FALSE
Difficulty: 1 Easy
Topic: Who Cares About Taxes and Why?
Learning Objective: 01-01 Demonstrate how taxes influence basic business, investment,
personal, and political decisions.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
2) Taxes influence business decisions such as where a business should locate or how a business
should be structured.
Answer: TRUE
Difficulty: 1 Easy
Topic: Who Cares About Taxes and Why?
Learning Objective: 01-01 Demonstrate how taxes influence basic business, investment,
personal, and political decisions.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
3) Tax policy rarely plays an important part in presidential campaigns.
Answer: FALSE
Difficulty: 1 Easy
Topic: Who Cares About Taxes and Why?
Learning Objective: 01-01 Demonstrate how taxes influence basic business, investment,
personal, and political decisions.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,4) Margaret recently received a parking ticket. This is a common example of a local tax.
Answer: FALSE
Difficulty: 1 Easy
Topic: What Qualifies as a Tax?
Learning Objective: 01-02 Discuss what constitutes a tax and the general objectives of taxes.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
5) George recently paid $50 to renew his driver's license. The $50 payment is considered a tax.
Answer: FALSE
Explanation: A tax is a payment required by a government that is unrelated to any specific
benefit or service received by the government.
Difficulty: 1 Easy
Topic: What Qualifies as a Tax?
Learning Objective: 01-02 Discuss what constitutes a tax and the general objectives of taxes.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
6) A 1 percent charge imposed by a local government on football tickets sold is not considered a
tax if all proceeds are earmarked to fund local schools.
Answer: FALSE
Difficulty: 2 Medium
Topic: What Qualifies as a Tax?
Learning Objective: 01-02 Discuss what constitutes a tax and the general objectives of taxes.
Bloom's: Understand
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
7) One key characteristic of a tax is that it is a required payment to a governmental agency.
Answer: TRUE
Difficulty: 2 Medium
Topic: What Qualifies as a Tax?
Learning Objective: 01-02 Discuss what constitutes a tax and the general objectives of taxes.
Bloom's: Analyze
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 8) Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.
Answer: FALSE
Difficulty: 2 Medium
Topic: What Qualifies as a Tax?
Learning Objective: 01-02 Discuss what constitutes a tax and the general objectives of taxes.
Bloom's: Analyze
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
9) One benefit of a sin tax (e.g., a tax on cigarettes) is that it should increase the demand for the
products being taxed.
Answer: FALSE
Difficulty: 2 Medium
Topic: What Qualifies as a Tax?
Learning Objective: 01-02 Discuss what constitutes a tax and the general objectives of taxes.
Bloom's: Analyze
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
10) In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic
or social objectives).
Answer: TRUE
Difficulty: 2 Medium
Topic: What Qualifies as a Tax?
Learning Objective: 01-02 Discuss what constitutes a tax and the general objectives of taxes.
Bloom's: Analyze
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
11) The two components of the tax calculation are the tax rate and the taxpayer's status.
Answer: FALSE
Explanation: Tax equals the tax base multiplied by the tax rate.
Difficulty: 2 Medium
Topic: How to Calculate a Tax
Learning Objective: 01-03 Describe the different tax rate structures and calculate a tax.
Bloom's: Analyze
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £22.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now