Test Bank for Principles of Taxation for Business and Investment Plannin 2024 27th Edition Jones
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.1) Payment of a tax entitles the payer to a specific good or service from the government.⊚ true ⊚ false
2) A user fee entitles the payer to a specific good or service from the government.⊚ true ⊚ false
3) A tax is intended to deter or punish unacceptable behavior.⊚ true ⊚ false
4) A tax is a payment to support the cost of government.⊚ true ⊚ false
5) Under U.S. tax law, corporations are entities separate and distinct from their shareholders.⊚ true ⊚ false
6) The person who pays a tax directly to the government always bears the economic incidence of the tax.⊚ true ⊚ false
7) In some cases, the payer of a tax can shift the economic incidence of the tax to a third party.⊚ true ⊚ false
8) The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.⊚ true ⊚ false 1 / 4
9) The U.S. government has jurisdiction to tax individuals who are not U.S. citizens or permanent U.S. residents but who earn income from a source within the United States.⊚ true ⊚ false
10) The U.S. government does not have jurisdiction to tax U.S. citizens who are permanent residents of another country.⊚ true ⊚ false
11) A tax with a graduated rate structure must have at least two brackets of tax base.⊚ true ⊚ false
12) A sales tax is an example of a transaction-based tax.⊚ true ⊚ false
13) A tax on net income is an example of a transaction-based tax.⊚ true ⊚ false
14) A sales tax is an example of an activity-based tax.⊚ true ⊚ false
15) Ad valorem property taxes are the major source of revenue for local governments.⊚ true ⊚ false
16) Taxes on personal property are more difficult to administer and enforce than taxes on real property.⊚ true ⊚ false
17) A state government may levy either a sales tax or a use tax on consumers but not both.⊚ true ⊚ false 2 / 4
18) Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.⊚ true ⊚ false
19) Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.⊚ true ⊚ false
20) The majority of state governments raise revenue from both personal and corporate income taxes.⊚ true ⊚ false
21) The federal government imposed the first income tax to raise money to fight the War of 1812.⊚ true ⊚ false
22) The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.⊚ true ⊚ false
23) The federal government collects more revenue from the corporate income tax than from the individual income tax.⊚ true ⊚ false
24) The federal government does not levy property taxes or a general sales tax.⊚ true ⊚ false
25) A business that operates in more than one state is required to pay state income tax only to the state in which it is incorporated.⊚ true ⊚ false 3 / 4
26) The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.⊚ true ⊚ false
27) Fewer than half of the state governments depend on some form of gambling as a source of revenue.⊚ true ⊚ false
28) According to the U.S. Supreme Court, states may require businesses to collect sales tax based on the residency of the purchaser.⊚ true ⊚ false
29) The Internal Revenue Code is written by the Internal Revenue Service.⊚ true ⊚ false
30) The U.S. Constitution requires that f T ed B e E ra X l t A ax M.le C gi O sl M ation begins in the Senate.⊚ true ⊚ false
31) The U. S. House Ways and Means Committee is responsible for drafting new federal tax legislation.⊚ true ⊚ false
32) Both the U.S. House of Representatives and the U.S. Senate must vote to approve a new federal tax bill before the bill is signed into law by the President.⊚ true ⊚ false
33) Treasury regulations are tax laws written by the Treasury Department.⊚ true ⊚ false
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