TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Taxes influence many types of business decisions but generally do not influence personal
decisions.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Demonstrate how taxes influence basic business, investment, personal, and
Topic : Who Cares About Taxes and Why?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-01 (Static) Taxes influence many types of business
decis...
2) Taxes influence business decisions such as where a business should locate or how a business
should be structured.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Demonstrate how taxes influence basic business, investment, personal, and
Topic : Who Cares About Taxes and Why?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-02 (Static) Taxes influence business decisions
such as where a...
Version 1 1
,3) Tax policy rarely plays an important part in presidential campaigns.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Demonstrate how taxes influence basic business, investment, personal, and
Topic : Who Cares About Taxes and Why?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-03 (Static) Tax policy rarely plays an important
part in presi...
4) Margaret recently received a parking ticket. This is a common example of a local tax.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-04 (Static) Margaret recently received a parking
ticket. This...
Version 1 2
,5) George recently paid $50 to renew his driver's license. The $50 payment is considered a tax.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-05 (Static) George recently paid $50 to renew his
driver's lic...
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.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-06 (Static) A 1 percent charge imposed by a local
government on footb...
Version 1 3
,7) One key characteristic of a tax is that it is a required payment to a governmental agency.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-07 (Static) One key characteristic of a tax is that it
is a re...
8) Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-08 (Static) Common examples of sin taxes include
the taxes imp...
Version 1 4
,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.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-09 (Static) One benefit of a sin tax (e.g., a tax on
cigarette...
10) In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic
or social objectives).
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-10 (Static) In addition to raising revenues, specific
U.S. tax...
Version 1 5
,11) The two components of the tax calculation are the tax rate and the taxpayer's status.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-11 (Static) The two components of the tax
calculation are the...
12) The tax base for the federal income tax is taxable income.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-12 (Static) The tax base for the federal income tax
is taxable...
Version 1 6
,13) A flat tax is an example of a graduated tax system.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-13 (Static) A flat tax is an example of a...
14) The main difficulty in calculating an income tax is determining the correct amount of the tax
base.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-14 (Static) The main difficulty in calculating an
income tax i...
Version 1 7
,15) A taxpayer's average tax rate is the most appropriate tax rate to use in tax planning.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-15 (Static) A taxpayer's average tax rate is
the most appropri...
16) The effective tax rate, in general, provides a better depiction of a taxpayer's tax burden than
the average tax rate.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-16 (Static) The effective tax rate, in general,
provides a bet...
Version 1 8
,17) The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's
taxable and nontaxable income.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-17 (Static) The effective tax rate expresses the
taxpayer's to...
18) In a proportional (flat) tax rate system, the marginal tax rate will always equal the average
tax rate.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-18 (Static) In a proportional (flat) tax rate system,
the marg...
Version 1 9
, 19) In a regressive tax rate system, the marginal tax rate will often be greater than the average tax
rate.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-19 (Static) In a regressive tax rate system, the
marginal tax...
20) A sales tax is a common example of a progressive tax rate structure.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-20 (Static) A sales tax is a common example of a
progressive t...
Version 1 10
1) Taxes influence many types of business decisions but generally do not influence personal
decisions.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Demonstrate how taxes influence basic business, investment, personal, and
Topic : Who Cares About Taxes and Why?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-01 (Static) Taxes influence many types of business
decis...
2) Taxes influence business decisions such as where a business should locate or how a business
should be structured.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Demonstrate how taxes influence basic business, investment, personal, and
Topic : Who Cares About Taxes and Why?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-02 (Static) Taxes influence business decisions
such as where a...
Version 1 1
,3) Tax policy rarely plays an important part in presidential campaigns.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-01 Demonstrate how taxes influence basic business, investment, personal, and
Topic : Who Cares About Taxes and Why?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-03 (Static) Tax policy rarely plays an important
part in presi...
4) Margaret recently received a parking ticket. This is a common example of a local tax.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-04 (Static) Margaret recently received a parking
ticket. This...
Version 1 2
,5) George recently paid $50 to renew his driver's license. The $50 payment is considered a tax.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-05 (Static) George recently paid $50 to renew his
driver's lic...
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.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Understand
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-06 (Static) A 1 percent charge imposed by a local
government on footb...
Version 1 3
,7) One key characteristic of a tax is that it is a required payment to a governmental agency.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-07 (Static) One key characteristic of a tax is that it
is a re...
8) Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-08 (Static) Common examples of sin taxes include
the taxes imp...
Version 1 4
,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.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-09 (Static) One benefit of a sin tax (e.g., a tax on
cigarette...
10) In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic
or social objectives).
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-02 Discuss what constitutes a tax and the general objectives of taxation.
Topic : What Qualifies as a Tax?
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-10 (Static) In addition to raising revenues, specific
U.S. tax...
Version 1 5
,11) The two components of the tax calculation are the tax rate and the taxpayer's status.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-11 (Static) The two components of the tax
calculation are the...
12) The tax base for the federal income tax is taxable income.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-12 (Static) The tax base for the federal income tax
is taxable...
Version 1 6
,13) A flat tax is an example of a graduated tax system.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-13 (Static) A flat tax is an example of a...
14) The main difficulty in calculating an income tax is determining the correct amount of the tax
base.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-14 (Static) The main difficulty in calculating an
income tax i...
Version 1 7
,15) A taxpayer's average tax rate is the most appropriate tax rate to use in tax planning.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-15 (Static) A taxpayer's average tax rate is
the most appropri...
16) The effective tax rate, in general, provides a better depiction of a taxpayer's tax burden than
the average tax rate.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-16 (Static) The effective tax rate, in general,
provides a bet...
Version 1 8
,17) The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's
taxable and nontaxable income.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Remember
Difficulty : 1 Easy
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-17 (Static) The effective tax rate expresses the
taxpayer's to...
18) In a proportional (flat) tax rate system, the marginal tax rate will always equal the average
tax rate.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-18 (Static) In a proportional (flat) tax rate system,
the marg...
Version 1 9
, 19) In a regressive tax rate system, the marginal tax rate will often be greater than the average tax
rate.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-19 (Static) In a regressive tax rate system, the
marginal tax...
20) A sales tax is a common example of a progressive tax rate structure.
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Screen Reader/Keyboard/CC
Bloom's : Analyze
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-03 Describe the three basic tax rate structures and calculate a tax.
Topic : How to Calculate a Tax
Type : Static
Source : Chapter 01 Test Bank - Static and Algo > TB TF Qu. 01-20 (Static) A sales tax is a common example of a
progressive t...
Version 1 10
