Test Bank for Taxation of Individuals 2020 Edition 11th Edition By Spilker
Test Bank for Taxation of Individuals 2020 Edition 11th Edition By Spilker
Taxation of Individuals 2020 Edition 11th Edition By Spilker – Test Bank
Taxation of Individuals 2020 Edition 11th Edition
Taxation of Individuals 2020 Edition
Taxation of Individuals, 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
AACSB: Reflective Thinking
AICPA: BB Critical 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
AACSB: Reflective Thinking
AICPA: BB Critical 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
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
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
AACSB: Reflective Thinking
AICPA: BB Critical 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
AACSB: Reflective Thinking
AICPA: BB Critical 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
AACSB: Reflective Thinking
AICPA: BB Critical 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
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
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
AACSB: Reflective Thinking
AICPA: BB Critical 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
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
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