Federal Tax Accounting Exam 1 Questions and Answers 100% Pass
purpose of taxation - Answers raise revenue for government operations
1634 - Answers income tax was first enacted by the english colonists
1861 - Answers federal government adopted an income tax
1909 - Answers federal corporate income tax enacted by congress
revenue act of 1913 - Answers the first form 1040 was due
1943 - Answers congress passed the current tax payment act, provided for a pay as you go tax system
tax base x tax rate - Answers basic tax formula
taxable income - Answers tax base is what?
equity, certainty, convenience of payment, economy in collection - Answers principles of taxation
property taxes (ad valorem) - Answers tax on wealth, or capital
real and personal - Answers two types of property taxes
land and buildings - Answers real property
all property that is not realty - Answers personal property
transaction taxes - Answers cover transfers of property and normally are determined by multiplying the
value by a percentage rate
excise taxes - Answers taxes on trucks, trailers, alcohol, misc
state and local excise taxes - Answers taxes parallel to federal taxes
sales tax - Answers covers a multitude of transactions
use tax - Answers compliment to the sales tax and is assessed at the same rate as the sales tax
severance tax - Answers based on the notion that the state has an interest in its natural resources
estate tax - Answers levied on the estate of the decendent
inheritance tax - Answers levied on the person receiving the property
federal estate tax - Answers intended to prevent large concentrations of wealth from being kept in a
family for many generations
gift tax - Answers excise tax levied on property transfers made during the owner's life and not at death
purpose of taxation - Answers raise revenue for government operations
1634 - Answers income tax was first enacted by the english colonists
1861 - Answers federal government adopted an income tax
1909 - Answers federal corporate income tax enacted by congress
revenue act of 1913 - Answers the first form 1040 was due
1943 - Answers congress passed the current tax payment act, provided for a pay as you go tax system
tax base x tax rate - Answers basic tax formula
taxable income - Answers tax base is what?
equity, certainty, convenience of payment, economy in collection - Answers principles of taxation
property taxes (ad valorem) - Answers tax on wealth, or capital
real and personal - Answers two types of property taxes
land and buildings - Answers real property
all property that is not realty - Answers personal property
transaction taxes - Answers cover transfers of property and normally are determined by multiplying the
value by a percentage rate
excise taxes - Answers taxes on trucks, trailers, alcohol, misc
state and local excise taxes - Answers taxes parallel to federal taxes
sales tax - Answers covers a multitude of transactions
use tax - Answers compliment to the sales tax and is assessed at the same rate as the sales tax
severance tax - Answers based on the notion that the state has an interest in its natural resources
estate tax - Answers levied on the estate of the decendent
inheritance tax - Answers levied on the person receiving the property
federal estate tax - Answers intended to prevent large concentrations of wealth from being kept in a
family for many generations
gift tax - Answers excise tax levied on property transfers made during the owner's life and not at death
