Managing Your Personal Finances 7th Edition by Joan S. Ryan – Test Bank

1. Federal income taxes are regressive.

  a.  True

  b.  False

ANSWER:   False

2. Consumption taxes are taxes on goods and services.

  a.  True

  b.  False

ANSWER:   True

3. On a local level, taxes pay for services such as education, parks, roads, police, fire, and health departments.

  a.  True

  b.  False

ANSWER:   True

4. In the United States, both businesses and individuals pay income taxes and must file income tax returns each year.

  a.  True

  b.  False

ANSWER:   True

5. Revenue bills must pass a vote in the Senate and then be signed by the President before they become law.

  a.  True

  b.  False

ANSWER:   False

6. When government spends more than it receives in revenue, it has a surplus.

  a.  True

  b.  False

ANSWER:   False

7. In the United States, all citizens are expected to prepare and file tax returns on their own without being forced to do so by the government.

  a.  True

  b.  False

ANSWER:   True

8. If you file a joint tax return, you can take an exemption for your spouse.

  a.  True

  b.  False

ANSWER:   True

9. Only married taxpayers qualify for the head of household filing status.

  a.  True

  b.  False

ANSWER:   False