LSU ACCT 3221 Chapter 1 | Questions with Verified Answers
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Course
ACCT 3221
Institution
ACCT 3221
LSU ACCT 3221 Chapter 1 | Questions with Verified Answers True/False: The U.S. individual income tax system is an example of a progressive tax rate structure. True True/False: A proportional tax rate structure is a tax where the tax rate remains at the same rate regardless of the tax base. True ...
True/False: The U.S. individual income tax system is an example of a progressive tax
rate structure.
True
True/False: A proportional tax rate structure is a tax where the tax rate remains at the
same rate regardless of the tax base.
True
True/False: Under a flat tax, the marginal tax rate and the average tax rate are different.
False
True/False: State and local taxes levied on either property or sales are examples of
progressive taxes.
False
True/False: With a regressive tax, the tax rate decreases as the tax base gets larger.
True
True/False: The marginal tax rate is the total tax liability divided by the taxable income.
False
True/False: The average tax rate is the total tax liability divided by the taxable income.
True
True/False: All individual income tax returns follow the structure of the simplified tax
formula.
True
True/False: The average tax rate is always smaller than the marginal tax rate.
False
True/False: At high levels of taxable income, the average tax rate and the marginal tax
rate will be the same.
False
True/False: Wages, salaries, and tips are compensation for services rendered.
However, commissions, bonuses, and severance pay are not taxable.
False
True/False: Federal unemployment compensation benefits are not taxable.
False
, True/False: A single taxpayer cannot file a Form 1040EZ if she is age 65 or older.
True
True/False: One of the criteria to file a Form 1040EZ is that the total taxable income of
the taxpayer cannot exceed $100,000.
True
True/False: Employers report wage income to employees on a Form W-3.
False
True/False: Individuals who file a Form 1040EZ will determine their tax liability with
reference to a tax rate schedule.
False
True/False: Taxpayers normally pay their tax liability when they file their income tax
return.
False
True/False: The amount of tax liability is affected by the filing status of the taxpayer.
True
True/False: The tax liability of a single individual with taxable income of $31,689 is
$4,334.
True
True/False: Tax liability is calculated using income before permitted deductions.
Permitted deductions are then subtracted from the tax liability.
False
True/False: There are two types of primary tax authority: statutory and judicial.
False
True/False: Typically, federal tax legislation is introduced in the Senate Finance
Committee.
False
True/False: IRS Regulations are by far the strongest administrative authority.
True
True/False: A Private Letter Ruling is tax authority only to the taxpayer to whom it is
issued.
True
True/False: One major disadvantage the taxpayer has when filing a petition with the Tax
Court is that the IRS's proposed tax assessment must be paid prior to trial.
False
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