1
WGU C237 TAXATION EXAM QUESTIONS AND
ANSWERS (LATEST UPDATE 2025)
Describe The History Of Taxation In The US - Correct Answers
✅Unconstitutional 1895
Sources Of Tax Law-Legislative Branch - Correct Answers ✅-
Internal Revenue Code (Top)
- Congressional Committee Reports
Describe The Criteria Of An Equitable Tax Structure Equity - Correct
Answers ✅Is It Fair
Simplicity - Correct Answers ✅Understandability
Economy - Correct Answers ✅Minimal Compliance And
Administrative Costs
Convenience - Correct Answers ✅No Burden Of Records And
Compliance
pg. 1
,2
Certainty - Correct Answers ✅Stability And Certainty Of Amount
Of Taxes
Regressive - Correct Answers ✅Decreases As Tax Base Increases
Proportional - Correct Answers ✅Flat Tax
Progressive - Correct Answers ✅Tax Increases As Tax Base
Increases
Gross Income - Correct Answers ✅Total Income - Exclusions
Taxable Income - Correct Answers ✅Gross Income-Deductions-
Exemptions
Income Before Tax Credits - Correct Answers ✅Taxable Income X
Tax Rate
Total Tax Liability - Correct Answers ✅Income Before Tax
Credits-Tax Credits
Balance Due Or Refund - Correct Answers ✅Total Tax Liability -
Prepayments
pg. 2
, 3
Distinguish Between Various Types Of Taxes - Correct Answers
✅State Tax
Local Income
Franchise Tax
Wealth Transfer Tax
Gift Tax
Federal Estate Tax
Property Tax
Federal Excise Tax - Customs
Sales Tax
Identify Different Types Of Entities That Are Subject To Taxation In
The US - Correct Answers ✅-Tax Paying Entities
Individuals
C Corps
-Flow Through Entities
Sole Proprietorship
pg. 3
WGU C237 TAXATION EXAM QUESTIONS AND
ANSWERS (LATEST UPDATE 2025)
Describe The History Of Taxation In The US - Correct Answers
✅Unconstitutional 1895
Sources Of Tax Law-Legislative Branch - Correct Answers ✅-
Internal Revenue Code (Top)
- Congressional Committee Reports
Describe The Criteria Of An Equitable Tax Structure Equity - Correct
Answers ✅Is It Fair
Simplicity - Correct Answers ✅Understandability
Economy - Correct Answers ✅Minimal Compliance And
Administrative Costs
Convenience - Correct Answers ✅No Burden Of Records And
Compliance
pg. 1
,2
Certainty - Correct Answers ✅Stability And Certainty Of Amount
Of Taxes
Regressive - Correct Answers ✅Decreases As Tax Base Increases
Proportional - Correct Answers ✅Flat Tax
Progressive - Correct Answers ✅Tax Increases As Tax Base
Increases
Gross Income - Correct Answers ✅Total Income - Exclusions
Taxable Income - Correct Answers ✅Gross Income-Deductions-
Exemptions
Income Before Tax Credits - Correct Answers ✅Taxable Income X
Tax Rate
Total Tax Liability - Correct Answers ✅Income Before Tax
Credits-Tax Credits
Balance Due Or Refund - Correct Answers ✅Total Tax Liability -
Prepayments
pg. 2
, 3
Distinguish Between Various Types Of Taxes - Correct Answers
✅State Tax
Local Income
Franchise Tax
Wealth Transfer Tax
Gift Tax
Federal Estate Tax
Property Tax
Federal Excise Tax - Customs
Sales Tax
Identify Different Types Of Entities That Are Subject To Taxation In
The US - Correct Answers ✅-Tax Paying Entities
Individuals
C Corps
-Flow Through Entities
Sole Proprietorship
pg. 3
