ACC 307 Tax Law complete Test Bank/ 1. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Que
Many states have balanced budgets because laws or constitutional amendments preclude
deficit spending.
*a. True
b. False
2. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW...
1. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Que
Many states have balanced budgets because laws or constitutional amendments preclude
deficit spending.
*a. True
b. False
2. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 2
The U.S. Federal government has a provision in the Constitution which precludes deficit
spending.
a. True
*b. False
3. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 3
Revenue-neutral tax laws reduce deficits.
a. True
*b. False
4. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 4
Longer class lives for depreciable property and the required use of straight-line method
of depreciation should dampen the tax incentive for purchasing capital assets.
*a. True
b. False
5. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 5
The Internal Revenue Code is a compilation of Federal tax legislation that appears in
Title 28 of the Internal Revenue Code.
a. True
*b. False
6. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 6
,Income from patents can qualify for capital gain treatment.
*a. True
b. False
7. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 7
Saving leads to capital formation and thus makes funds available to finance home
construction and industrial expansion.
*a. True
b. False
8. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 8
The corporate tax rate of 34 percent applies only to taxable income in excess of $75,000.
*a. True
b. False
9. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q 9
The earned income tax credit is refundable.
*a. True
b. False
10. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q10
The deduction for charitable contributions can be explained by social considerations.
*a. True
b. False
11. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q11
The Hope scholarship credit can be explained by economic considerations.
a. True
*b. False
,12. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q12
The adoption tax credit can be explained by social considerations.
*a. True
b. False
13. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q13
Allowing a taxpayer to choose either a credit or a deduction for foreign taxes paid can be
explained by equity considerations.
*a. True
b. False
14. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q14
Neither the 1939 nor the 1954 Code substantially changed all the tax law existing on the
date of its enactment.
*a. True
b. False
15. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q15
Federal tax legislation generally originates in the Senate Finance Committee.
a. True
*b. False
16. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q16
Subchapter K refers to the “Partners and Partnerships” section of the Code.
*a. True
b. False
17. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q17
Subchapter C refers to the “Corporate Distributions and Adjustments” section of the
, Code.
*a. True
b. False
18. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q18
Some Regulations are arranged in different sequence than the Code.
a. True
*b. False
19. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q19
Proposed Regulations have the force and effect of law.
a. True
*b. False
20. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q20
Temporary Regulations have the same authoritative value as Finalized Regulations.
*a. True
b. False
21. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q21
Proposed Regulations are not published in the Federal Register.
a. True
*b. False
22. CHAPTER 1UNDERSTANDING AND WORKING WITH THE FEDERAL TAX
LAW Q22
Regulations are issued by the Treasury Department.
*a. True
b. False
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