Income Tax Accounting Chapter 1
reviewed questions with correct
answers.
ANS - A reduction in the level of taxation faced by an individual or company. Examples of this include a
tax decrease, a reduction in penalties, or a rebate (reduction from someone who has paid too much
money)
activity-based tax ANS - A tax that can be described as this when it is imposed on the increasing or
increased result of of an ongoing activity. Taxpayers must maintain records of the activity, summarize
the result at periodic intervals, and pay the tax accordingly. Ex: An annual income tax (inflow of wealth
from income
ad valorem tax ANS - real property taxes and personal property taxes
bracket ANS - certain portion of a tax base that relates to how much income a person makes
Cumulative Bulletin ANS - A publication used by the Internal Revenue Service usually every 6 months
that combines the contents of Internal Revenue Bulletins (instrument for initiating rulings and
procedures by the IRS)
Internal Revenue Bulletins ANS - instrument for initiating rulings and procedures by the IRS
earmarked tax ANS - tax based on funds or capital that are set aside to pay for a specific project
employment tax ANS - tax based on annual wages and salaries paid by business owners to their
employees and on the net income earned by self-employed individuals. They are earmarked to pay for
Social Security and Medicare
unemployment taxes ANS - Tax based on annual compensation paid to employees. They pay for
unemployment insurance.
reviewed questions with correct
answers.
ANS - A reduction in the level of taxation faced by an individual or company. Examples of this include a
tax decrease, a reduction in penalties, or a rebate (reduction from someone who has paid too much
money)
activity-based tax ANS - A tax that can be described as this when it is imposed on the increasing or
increased result of of an ongoing activity. Taxpayers must maintain records of the activity, summarize
the result at periodic intervals, and pay the tax accordingly. Ex: An annual income tax (inflow of wealth
from income
ad valorem tax ANS - real property taxes and personal property taxes
bracket ANS - certain portion of a tax base that relates to how much income a person makes
Cumulative Bulletin ANS - A publication used by the Internal Revenue Service usually every 6 months
that combines the contents of Internal Revenue Bulletins (instrument for initiating rulings and
procedures by the IRS)
Internal Revenue Bulletins ANS - instrument for initiating rulings and procedures by the IRS
earmarked tax ANS - tax based on funds or capital that are set aside to pay for a specific project
employment tax ANS - tax based on annual wages and salaries paid by business owners to their
employees and on the net income earned by self-employed individuals. They are earmarked to pay for
Social Security and Medicare
unemployment taxes ANS - Tax based on annual compensation paid to employees. They pay for
unemployment insurance.
