Test Bank for
South-Western Federal Taxation 2025: Corporations,
Partnerships, Estates and Trusts 48th edition Nellen
Young
Page 1
,Test Bank South-Western Federal Taxation 2025: Corporations, Partnerships,
Estates And Trusts By Nellen
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
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
Page 2
,Chapter 01: Understanding and Working with the Federal Tax Law
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
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
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
Page 3
, Chapter 01: Understanding and Working with the Federal Tax Law
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
7. The Encouragement Of Private-Sector Pension Plans Can Be Justified Under The Encouragement Of Certain
Industries. A. True
B. False
ANSWER: False
RATIONALE: Justified Under Social Considerations And Encouragement Of Certain Activities (E.G.,
Savings).
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-Measurement
United States - AK - AICPA: FN-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 Min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
8. One Internal Revenue Code Section Enables Shareholders In A Small Business Corporation To Obtain An
Ordinary Deduction For Any Loss Recognized On A Stock Investment.
A. True
B. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
Page 4
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 EFT, credit card or Stuvia-credit 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kylaexcell. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R379,19. You're not tied to anything after your purchase.
