TAX 4001 - EXAM 1 (1, 2, 3, 4, AND 6) QUESTIONS
Which of the following is NOT a standard for good tax policy? - Representation
Which of the following is NOT a taxpayer - Partnership
Which of the following terms refers to a temporary exemption from a tax? - Abatement
What is another name for a property tax? - Ad valorem tax
In which marginal tax rate structure does the tax rate increase as the tax base
increases? - Progressive
Which of the following types of taxes is NOT used by the Federal government? - Use
tax
Which of the following is NOT an administrative authority/source of tax law? - Internal
Revenue Codes
Which of the following is NOT a congressional committee involved with the passage of
tax law? - Appropriations Committee
Which of the following is NOT an aspect of a fair tax? - Easy to compute/pay
Which of the following is NOT a variable related to a maxim of tax planning? - Evasion
Variable
What is the basic concept behind TVM? - A dollar today is worth more than a dollar
tomorrow
An after tax cash outflow is reduced by a tax savings when - The related expense is
deductible
Which of the following accounting methods results in the least favorable timing for
recognition of prepaid service income? - Standard Tax Accrual Method
Which of the following is NOT a condition that determines whether income is included in
taxable income for an accrual method taxpayer? - Economic performance with respect
to the income has occurred
In general, prepaid income is usually - Included in taxable income before it is included in
book income
Which of the following is NOT a standard for good tax policy? - Representation
Which of the following is NOT a taxpayer - Partnership
Which of the following terms refers to a temporary exemption from a tax? - Abatement
What is another name for a property tax? - Ad valorem tax
In which marginal tax rate structure does the tax rate increase as the tax base
increases? - Progressive
Which of the following types of taxes is NOT used by the Federal government? - Use
tax
Which of the following is NOT an administrative authority/source of tax law? - Internal
Revenue Codes
Which of the following is NOT a congressional committee involved with the passage of
tax law? - Appropriations Committee
Which of the following is NOT an aspect of a fair tax? - Easy to compute/pay
Which of the following is NOT a variable related to a maxim of tax planning? - Evasion
Variable
What is the basic concept behind TVM? - A dollar today is worth more than a dollar
tomorrow
An after tax cash outflow is reduced by a tax savings when - The related expense is
deductible
Which of the following accounting methods results in the least favorable timing for
recognition of prepaid service income? - Standard Tax Accrual Method
Which of the following is NOT a condition that determines whether income is included in
taxable income for an accrual method taxpayer? - Economic performance with respect
to the income has occurred
In general, prepaid income is usually - Included in taxable income before it is included in
book income
