ACCT 4331 MID-TERM EXAM
QUESTIONS AND ANSWERS 100% PASS
2026 EDITION
Which of the following is not normally considered a characteristic of a tax?
A. It is levied on a recurring basis.
B. a. It is levied on some predetermined criteria.
C. It is compulsory to pay it.
D. It may give the payer some right or privilege. - ANS D. It may give the payer some right or
privilege.
All of the following statements concerning the federal tax system are correct EXCEPT:
A. The power of Congress to levy taxes is provided by the Sixteenth Amendment to the
Constitution.
B. The principal source of revenue for the federal government is the personal income tax.
C. The second largest source of revenue for the federal government is the corporate income tax.
D. Under the original Constitution, any direct tax imposed by Congress was required to be
apportioned among the states on the basis of relative populations. - ANS C. The second
largest source of revenue for the federal government is the corporate income tax.
The percentage at which the next dollar added to taxable income will be taxed is known as the
A. average tax rate.
B. marginal tax rate.
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,C. effective tax rate.
D. proportional tax rate.
E. progressive tax rate. - ANS B. marginal tax rate.
FICA taxes are imposed on
A. employer only.
B. the self-employed only.
C. both employer and employee.
D. employee only. - ANS C. both employer and employee.
FUTA and SUTA taxes are imposed on
A. employer only.
B. the self-employed only.
C. both employer and employee.
D. employee only. - ANS A. employer only.
All of the following are examples of using the tax system to achieve social objectives EXCEPT:
A. Deduction for charitable contributions.
B. Accelerated depreciation deduction.
C. Additional standard deduction for the elderly.
D. Deduction for medical expenses.
E. Credit for renovation of historical buildings. - ANS B. Accelerated depreciation deduction.
To avoid the 20 percent accuracy-related penalty for insubstantial negligence on a tax return,
the taxpayer's position on the return must have, at a minimum,
A. a reasonable basis.
B. a realistic possibility of success.
C. substantial authority.
D. a greater than 50 percent chance of succeeding.
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, E. a 100 percent chance of succeeding. - ANS A. a reasonable basis.
Revenue bills normally are initiated by the
A. House Ways and Means Committee.
B. Senate Finance Committee.
C. Joint Conference Committee.
D. President. - ANS A. House Ways and Means Committee.
Which of the following is not true of Treasury Regulations?
A. They are written by the Treasury Department.
B. They are issued in the form of Treasury Decisions.
C. Proposed Regulations are not effective until issued in final form.
D. Temporary Regulations are not effective until issued in final form.
E. Regulations can be classified as legislative, interpretative, or procedural. - ANS D.
Temporary Regulations are not effective until issued in final form.
In which Federal trial court may a taxpayer request trial by jury?
A. U.S. Tax Court.
B. U.S. District Court.
C. U.S. Court of Federal Claims.
D. U.S. Court of Appeals.
E. U.S. Supreme Court. - ANS B. U.S. District Court.
In which Federal trial court may a taxpayer proceed without paying the tax deficiency proposed
by the IRS?
A. U.S. Tax Court.
B. U.S. District Court.
C. U.S. Court of Federal Claims
D. U.S. Court of Appeals.
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@2026 EDITION ALLRIGHTS RESERVED
QUESTIONS AND ANSWERS 100% PASS
2026 EDITION
Which of the following is not normally considered a characteristic of a tax?
A. It is levied on a recurring basis.
B. a. It is levied on some predetermined criteria.
C. It is compulsory to pay it.
D. It may give the payer some right or privilege. - ANS D. It may give the payer some right or
privilege.
All of the following statements concerning the federal tax system are correct EXCEPT:
A. The power of Congress to levy taxes is provided by the Sixteenth Amendment to the
Constitution.
B. The principal source of revenue for the federal government is the personal income tax.
C. The second largest source of revenue for the federal government is the corporate income tax.
D. Under the original Constitution, any direct tax imposed by Congress was required to be
apportioned among the states on the basis of relative populations. - ANS C. The second
largest source of revenue for the federal government is the corporate income tax.
The percentage at which the next dollar added to taxable income will be taxed is known as the
A. average tax rate.
B. marginal tax rate.
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@2026 EDITION ALLRIGHTS RESERVED
,C. effective tax rate.
D. proportional tax rate.
E. progressive tax rate. - ANS B. marginal tax rate.
FICA taxes are imposed on
A. employer only.
B. the self-employed only.
C. both employer and employee.
D. employee only. - ANS C. both employer and employee.
FUTA and SUTA taxes are imposed on
A. employer only.
B. the self-employed only.
C. both employer and employee.
D. employee only. - ANS A. employer only.
All of the following are examples of using the tax system to achieve social objectives EXCEPT:
A. Deduction for charitable contributions.
B. Accelerated depreciation deduction.
C. Additional standard deduction for the elderly.
D. Deduction for medical expenses.
E. Credit for renovation of historical buildings. - ANS B. Accelerated depreciation deduction.
To avoid the 20 percent accuracy-related penalty for insubstantial negligence on a tax return,
the taxpayer's position on the return must have, at a minimum,
A. a reasonable basis.
B. a realistic possibility of success.
C. substantial authority.
D. a greater than 50 percent chance of succeeding.
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@2026 EDITION ALLRIGHTS RESERVED
, E. a 100 percent chance of succeeding. - ANS A. a reasonable basis.
Revenue bills normally are initiated by the
A. House Ways and Means Committee.
B. Senate Finance Committee.
C. Joint Conference Committee.
D. President. - ANS A. House Ways and Means Committee.
Which of the following is not true of Treasury Regulations?
A. They are written by the Treasury Department.
B. They are issued in the form of Treasury Decisions.
C. Proposed Regulations are not effective until issued in final form.
D. Temporary Regulations are not effective until issued in final form.
E. Regulations can be classified as legislative, interpretative, or procedural. - ANS D.
Temporary Regulations are not effective until issued in final form.
In which Federal trial court may a taxpayer request trial by jury?
A. U.S. Tax Court.
B. U.S. District Court.
C. U.S. Court of Federal Claims.
D. U.S. Court of Appeals.
E. U.S. Supreme Court. - ANS B. U.S. District Court.
In which Federal trial court may a taxpayer proceed without paying the tax deficiency proposed
by the IRS?
A. U.S. Tax Court.
B. U.S. District Court.
C. U.S. Court of Federal Claims
D. U.S. Court of Appeals.
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