Fundamentals of Taxation 2023 Edition 16th
Edition Cruz TEST BANK
,TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The U.S. individual income tax system is an example of a progressive tax rate structure.
⊚ true
⊚ false
2) A proportional tax rate structure is a tax where the tax rate remains at the same rate
regardless of the tax base.
⊚ true
⊚ false
3) Under a flat tax, the marginal tax rate and the average tax rate are different.
⊚ true
⊚ false
4) State and local taxes levied on either property or sales are examples of progressive taxes.
⊚ true
⊚ false
5) With a regressive tax, the tax rate increases as the tax base gets larger.
⊚ true
⊚ false
6) The marginal tax rate is the total tax liability divided by the taxable income.
⊚ true
⊚ false
7) The average tax rate is the total tax liability divided by the taxable income.
⊚ true
⊚ false
8) All individual income tax returns follow the basic structure of the simplified tax formula.
⊚ true
⊚ false
9) With a progressive rate structure, the average tax rate is always smaller than the marginal tax
rate.
⊚ true
⊚ false
, 10) At high levels of taxable income, the average tax rate and the marginal tax rate will always
be the same.
⊚ true
⊚ false
11) Wages, salaries, and tips are compensation for services rendered. However, commissions,
bonuses, and severance pay are not taxable.
⊚ true
⊚ false
12) Federal unemployment compensation benefits are not taxable.
⊚ true
⊚ false
13) A single taxpayer cannot file a Form 1040 if she is age 65 or older.
⊚ true
⊚ false
14) One of the criteria to file a Form 1040 is that the total taxable income of the taxpayer cannot
exceed $100,000.
⊚ true
⊚ false
15) Employers report wage income to employees on a Form W-3.
⊚ true
⊚ false
16) Individuals who file a Form 1040 should determine their tax liability with reference to a tax
rate schedule.
⊚ true
⊚ false
17) Taxpayers normally pay almost all of their tax liability when they file their income tax return.
⊚ true
⊚ false
18) The amount of tax liability is affected by the filing status of the taxpayer.
⊚ true
⊚ false
Edition Cruz TEST BANK
,TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The U.S. individual income tax system is an example of a progressive tax rate structure.
⊚ true
⊚ false
2) A proportional tax rate structure is a tax where the tax rate remains at the same rate
regardless of the tax base.
⊚ true
⊚ false
3) Under a flat tax, the marginal tax rate and the average tax rate are different.
⊚ true
⊚ false
4) State and local taxes levied on either property or sales are examples of progressive taxes.
⊚ true
⊚ false
5) With a regressive tax, the tax rate increases as the tax base gets larger.
⊚ true
⊚ false
6) The marginal tax rate is the total tax liability divided by the taxable income.
⊚ true
⊚ false
7) The average tax rate is the total tax liability divided by the taxable income.
⊚ true
⊚ false
8) All individual income tax returns follow the basic structure of the simplified tax formula.
⊚ true
⊚ false
9) With a progressive rate structure, the average tax rate is always smaller than the marginal tax
rate.
⊚ true
⊚ false
, 10) At high levels of taxable income, the average tax rate and the marginal tax rate will always
be the same.
⊚ true
⊚ false
11) Wages, salaries, and tips are compensation for services rendered. However, commissions,
bonuses, and severance pay are not taxable.
⊚ true
⊚ false
12) Federal unemployment compensation benefits are not taxable.
⊚ true
⊚ false
13) A single taxpayer cannot file a Form 1040 if she is age 65 or older.
⊚ true
⊚ false
14) One of the criteria to file a Form 1040 is that the total taxable income of the taxpayer cannot
exceed $100,000.
⊚ true
⊚ false
15) Employers report wage income to employees on a Form W-3.
⊚ true
⊚ false
16) Individuals who file a Form 1040 should determine their tax liability with reference to a tax
rate schedule.
⊚ true
⊚ false
17) Taxpayers normally pay almost all of their tax liability when they file their income tax return.
⊚ true
⊚ false
18) The amount of tax liability is affected by the filing status of the taxpayer.
⊚ true
⊚ false
