CHAPTER 1 ACCOUNTING 307 COLLUM ee ee ee ee
QUESTIONS WITH CORRECT ANSWERS
ee ee ee ee
2024
ee
Which eeof eethe eefollowing eedecisions eewould eemost eelikely eeNOT eebe eeinfluenced eeby eeour eetax
eesystem? ee- eecorrect eeanswer-choosing eea eevacation eedestination
Which eeof eethe eefollowing eeis eea eenecessary eecriteria eefor eea eepayment eeto eebe eeconsidered eea eetax? ee-
eecorrect eeanswer- eeThe eepayment eeis eerequired eeby eea eegovernment eebody
Which eeof eethe eefollowing eedefinitions eedescribes eea eetax? ee- eecorrect eeanswer-
AEpayment eerequired eeby eea eepayment eethatEis eeunrelated eeto eeany eespecific eebenefit eeor eeservice eereceived eefrom
eethe eeg eeovernment
The eegeneral eepurpose eeof eea eetax eeis eeto eeprovide eeincentives eethat eewill eestimulate eeand eeimprove eethe
eeeconomy ee- eecorrect eeanswer-False
Arlene eeis eesingle eeand eehas eetaxable eeincome eeof ee$34,000. eeHer eetax eeliability eeis eecurrently ee$4,636. eeShe
eehas eethe eeoppor eetunity eeto eeearn eean eeadditional ee$6,000 eethis eeyear. eeHer eetax eeliability eewill eegrow eeto
ee$5,771 eeif eeshe eereceivesEthe eeadditi eeonal eeincome. eeWhatEis eeArlene's eemarginal eetax eerate eefor eethe
eeadditional ee$6,000? ee- eecorrect eeanswer-(5771- ee4636)/6000 ee= ee.1892 ee18.92%
Which eeof eethe eefollowing eecommon eedecisions eewould eemost eelikely eeNOT eebe eeinfluenced eeby eethe eeUnited
eeStatesEinco eeme eetax eelaws? ee-Ecorrect eeanswer-choosing eea eepublicEschool eefor eeyour eechildren
Marcus eeand eeLydia eeBrown eeare eemarried eeand eefilingEjointly eeand eehave ee$155,000 eein eetaxable eeincome.
eeLydia eehas eebe eeen eeoffered eea eejobEpromotion eewhich eewill eeincrease eetheir eetaxable eeincome eeto ee$174,000
eein ee2019. eeThis eeadditional eei eencome eewill eemove eethem eeinto eethe eenext eegraduated eetax eebracket ee(24%).
eeWhich eeof eethe eefollowing eestatementsEis eec eeorrect? ee- eecorrect eeanswer-
AEportion eeof eethe eeadditional ee$19,000 eewill eebe eetaxed eeat ee22% eeand eea eeportion eewill eebe eetaxed eeatE24%
Randall eeisEsingle eeand eehas eetotal eeincome eefrom eeall eesources ee(taxable eeand eenontaxable) eeof ee$83,000. eeHis
eetaxable eein eecome eeis ee$62,000. eeRandall's eetax eeliability eeis ee$11,239. eeWhat eeis eeRandall's eeaverage eetax eerate?
ee- eecorrect eeanswer- ee11,239/62,000 ee= ee18.13%
, Marginal eeTax eeRate ee- eecorrect eeanswer-
is eethe eetax eerate eethat eeapplies eeto eethe eenext eeadditional eeincrement eeof eea eetaxpayer's eetaxable eeincome ee(or
eedeductions
)
The eegeneral eepurpose eeof eea eetax eeis eeto eeraise ee to eefund eethe eeoperations eeof eethe ee
- eecorrect eeanswer-
Revenue eegovernment
Tax ee- eecorrect eeanswer-
is eea eepayment eerequired eeby eea eegovernment eethat eeis eeunrelated eeto eeany eespecificEbenefit eeor eeservice
eereceived eefrom eet eehe eegovernment. eeThe eegeneral eepurpose eeof eea eetax eeis eeto eefund eethe eeoperations eeof
eethe eegovernment ee(to eeraise eereven eeue)
Which eeof eethe eefollowing eecalculations eeis eecorrectEfor eedetermining eethe eeamount eeof eetax? ee- eecorrect
eeanswer- eeTax ee= eeTax eeBase eeX eeTax eeRate
Jose eehas eebeen eeoffered eea eenew eejob. eeThe eenew eejob eewill eepay eemore eethan eehis eecurrent eejob. eeJose eeis
eehesitant eeto eetake eet eehe eenew eejobEbecause eeit eewill eecause eehis eeincome eeto eeexceed eethe eemaximum
eeamount eein eehis eecurrent eetax eebracket. eeH eee eeis eeconcerned eethat eethe eeincrease eein eetaxes eewill eeexceed
eehis eeincreased eeincome eefrom eethe eenew eejob. ee-
correct eeanswer-
This eeis eenot eepossible. eeOnly eethe eeportion eeof eeincome eethat eeexceeds eeJose's eecurrent eebracket eewill eebe
eetaxed eeat eethe eehi eegher eerate, eenot eehis eetotal eetaxable eeincome
average eetax eerate ee- eecorrect eeanswer-
represents eea eetaxpayer's eeaverage eelevel eeof eetaxation eeon eeeach eedollar eeof eetaxable eeincome. eeOften eeused
eein eebudgeti eeng eetax eeexpense eeas eea eeportion eeof eeincome ee(determining eewhat eepercent eeof eetaxable eeincome
eeearned eeis eepaid eein eetax)
Steven eeand eeSally eehave eeincome eefrom eeall eesources ee(taxable eeand eenontaxable) eetotaling ee$140,286. eeTheir
eetaxable eei eencome eeis ee$114,966. eeTheir eetax eeliability eeis ee$20,219. eeTheir eeeffective eetax eerate eeis ee -
eecorrect eeanswer-14.41%
Tori eebought eea eedress eecosting ee$80 eefrom eeArlene's eeDress eeShop eein eea eestate eewhere eethere eeis eea eesales
eetax. eeThe eetax eebas eee eeis eethe eeprice eeof eethe eedress, eeand eethe eetax eerate eeis ee6 eepercent. eeWhat eeamount eeof
eetax eedid eeTori eehave eeto eepay eeon eethe eep eeurchase? ee- eecorrect eeanswer-Tax eeBase eeX eeTax eeRate ee= ee($80 eeX
ee.06 ee= ee$4.80)
QUESTIONS WITH CORRECT ANSWERS
ee ee ee ee
2024
ee
Which eeof eethe eefollowing eedecisions eewould eemost eelikely eeNOT eebe eeinfluenced eeby eeour eetax
eesystem? ee- eecorrect eeanswer-choosing eea eevacation eedestination
Which eeof eethe eefollowing eeis eea eenecessary eecriteria eefor eea eepayment eeto eebe eeconsidered eea eetax? ee-
eecorrect eeanswer- eeThe eepayment eeis eerequired eeby eea eegovernment eebody
Which eeof eethe eefollowing eedefinitions eedescribes eea eetax? ee- eecorrect eeanswer-
AEpayment eerequired eeby eea eepayment eethatEis eeunrelated eeto eeany eespecific eebenefit eeor eeservice eereceived eefrom
eethe eeg eeovernment
The eegeneral eepurpose eeof eea eetax eeis eeto eeprovide eeincentives eethat eewill eestimulate eeand eeimprove eethe
eeeconomy ee- eecorrect eeanswer-False
Arlene eeis eesingle eeand eehas eetaxable eeincome eeof ee$34,000. eeHer eetax eeliability eeis eecurrently ee$4,636. eeShe
eehas eethe eeoppor eetunity eeto eeearn eean eeadditional ee$6,000 eethis eeyear. eeHer eetax eeliability eewill eegrow eeto
ee$5,771 eeif eeshe eereceivesEthe eeadditi eeonal eeincome. eeWhatEis eeArlene's eemarginal eetax eerate eefor eethe
eeadditional ee$6,000? ee- eecorrect eeanswer-(5771- ee4636)/6000 ee= ee.1892 ee18.92%
Which eeof eethe eefollowing eecommon eedecisions eewould eemost eelikely eeNOT eebe eeinfluenced eeby eethe eeUnited
eeStatesEinco eeme eetax eelaws? ee-Ecorrect eeanswer-choosing eea eepublicEschool eefor eeyour eechildren
Marcus eeand eeLydia eeBrown eeare eemarried eeand eefilingEjointly eeand eehave ee$155,000 eein eetaxable eeincome.
eeLydia eehas eebe eeen eeoffered eea eejobEpromotion eewhich eewill eeincrease eetheir eetaxable eeincome eeto ee$174,000
eein ee2019. eeThis eeadditional eei eencome eewill eemove eethem eeinto eethe eenext eegraduated eetax eebracket ee(24%).
eeWhich eeof eethe eefollowing eestatementsEis eec eeorrect? ee- eecorrect eeanswer-
AEportion eeof eethe eeadditional ee$19,000 eewill eebe eetaxed eeat ee22% eeand eea eeportion eewill eebe eetaxed eeatE24%
Randall eeisEsingle eeand eehas eetotal eeincome eefrom eeall eesources ee(taxable eeand eenontaxable) eeof ee$83,000. eeHis
eetaxable eein eecome eeis ee$62,000. eeRandall's eetax eeliability eeis ee$11,239. eeWhat eeis eeRandall's eeaverage eetax eerate?
ee- eecorrect eeanswer- ee11,239/62,000 ee= ee18.13%
, Marginal eeTax eeRate ee- eecorrect eeanswer-
is eethe eetax eerate eethat eeapplies eeto eethe eenext eeadditional eeincrement eeof eea eetaxpayer's eetaxable eeincome ee(or
eedeductions
)
The eegeneral eepurpose eeof eea eetax eeis eeto eeraise ee to eefund eethe eeoperations eeof eethe ee
- eecorrect eeanswer-
Revenue eegovernment
Tax ee- eecorrect eeanswer-
is eea eepayment eerequired eeby eea eegovernment eethat eeis eeunrelated eeto eeany eespecificEbenefit eeor eeservice
eereceived eefrom eet eehe eegovernment. eeThe eegeneral eepurpose eeof eea eetax eeis eeto eefund eethe eeoperations eeof
eethe eegovernment ee(to eeraise eereven eeue)
Which eeof eethe eefollowing eecalculations eeis eecorrectEfor eedetermining eethe eeamount eeof eetax? ee- eecorrect
eeanswer- eeTax ee= eeTax eeBase eeX eeTax eeRate
Jose eehas eebeen eeoffered eea eenew eejob. eeThe eenew eejob eewill eepay eemore eethan eehis eecurrent eejob. eeJose eeis
eehesitant eeto eetake eet eehe eenew eejobEbecause eeit eewill eecause eehis eeincome eeto eeexceed eethe eemaximum
eeamount eein eehis eecurrent eetax eebracket. eeH eee eeis eeconcerned eethat eethe eeincrease eein eetaxes eewill eeexceed
eehis eeincreased eeincome eefrom eethe eenew eejob. ee-
correct eeanswer-
This eeis eenot eepossible. eeOnly eethe eeportion eeof eeincome eethat eeexceeds eeJose's eecurrent eebracket eewill eebe
eetaxed eeat eethe eehi eegher eerate, eenot eehis eetotal eetaxable eeincome
average eetax eerate ee- eecorrect eeanswer-
represents eea eetaxpayer's eeaverage eelevel eeof eetaxation eeon eeeach eedollar eeof eetaxable eeincome. eeOften eeused
eein eebudgeti eeng eetax eeexpense eeas eea eeportion eeof eeincome ee(determining eewhat eepercent eeof eetaxable eeincome
eeearned eeis eepaid eein eetax)
Steven eeand eeSally eehave eeincome eefrom eeall eesources ee(taxable eeand eenontaxable) eetotaling ee$140,286. eeTheir
eetaxable eei eencome eeis ee$114,966. eeTheir eetax eeliability eeis ee$20,219. eeTheir eeeffective eetax eerate eeis ee -
eecorrect eeanswer-14.41%
Tori eebought eea eedress eecosting ee$80 eefrom eeArlene's eeDress eeShop eein eea eestate eewhere eethere eeis eea eesales
eetax. eeThe eetax eebas eee eeis eethe eeprice eeof eethe eedress, eeand eethe eetax eerate eeis ee6 eepercent. eeWhat eeamount eeof
eetax eedid eeTori eehave eeto eepay eeon eethe eep eeurchase? ee- eecorrect eeanswer-Tax eeBase eeX eeTax eeRate ee= ee($80 eeX
ee.06 ee= ee$4.80)
