©THEBRIGHT EXAM SOLUTIONS
11/05/2024 12:06 PM
Accounting 321 Tax Ch. 1 Exam Questions
With Correct Answers
Ad valorem - answer✔a tax based on the value of property
average tax rate - answer✔a taxpayer's average level of taxation on each dollat of taxable income.
Specifically,
Average tax rate=total tax/taxable income
bracket - answer✔a subset (or portion) of the tax base subject to a specific tax rate. Brackets are
common to graduated taxes.
certainty - answer✔one of the criteria used to evaluate tax systems. Certainty means taxpayers should
be able to determine when, where, and how much tax to pay
convenience - answer✔one set of the criteria used to evaluate tax systems. Convenience means a tax
system should be designed to facilitate the collection of tax revenues without undue hardship on the
taxpayer or the government.
dynamic forecasting - answer✔the proecess of forecasting tax revenues that incorporates into the
forecast how taxpayers may alter their activites in response to a tax law change.
earmarked tax - answer✔a tax assessed for a specific purpose ex: for education
economy - answer✔one of the criteria used to evaluate tax stems. Economy means a tax system should
minimize its compliance and administration costs.
effective tax rate - answer✔the taxpayer's average rate of taxation on each dollar of total income
(taxable and nontaxable income). Specifically,
Effective tax rate=total tax/taxable income
11/05/2024 12:06 PM
Accounting 321 Tax Ch. 1 Exam Questions
With Correct Answers
Ad valorem - answer✔a tax based on the value of property
average tax rate - answer✔a taxpayer's average level of taxation on each dollat of taxable income.
Specifically,
Average tax rate=total tax/taxable income
bracket - answer✔a subset (or portion) of the tax base subject to a specific tax rate. Brackets are
common to graduated taxes.
certainty - answer✔one of the criteria used to evaluate tax systems. Certainty means taxpayers should
be able to determine when, where, and how much tax to pay
convenience - answer✔one set of the criteria used to evaluate tax systems. Convenience means a tax
system should be designed to facilitate the collection of tax revenues without undue hardship on the
taxpayer or the government.
dynamic forecasting - answer✔the proecess of forecasting tax revenues that incorporates into the
forecast how taxpayers may alter their activites in response to a tax law change.
earmarked tax - answer✔a tax assessed for a specific purpose ex: for education
economy - answer✔one of the criteria used to evaluate tax stems. Economy means a tax system should
minimize its compliance and administration costs.
effective tax rate - answer✔the taxpayer's average rate of taxation on each dollar of total income
(taxable and nontaxable income). Specifically,
Effective tax rate=total tax/taxable income
