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tax problems ch 1 2015 mcq

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Question;Multiple;Choice Questions;39.;Taxes;influence which of the following decisions?;A.;business decisions;B.;personal decisions;C.;political decisions;D.;investment decisions;E.;All of these;40.;Margaret was;issued a $150 speeding ticket. This is;A.;A tax because payment is required by law;B.;A tax because the payment is not related to any specific;benefit received from the government agency collecting the ticket;C.;Not a tax because it is considered a fine intended to punish;illegal behavior;D.;A tax because it is imposed by a government agency;E.;Not a tax because Margaret could have avoided payment if she;did not speed;41.;Which of the;following is a tax?;I. A 1% special;sales tax for funding local road construction.;II. A fee paid to;the state for a license to practice as an attorney.;III. An income tax;imposed by Philadelphia on persons working within the city limits.;IV. A special;property assessment for installing a new water system in the taxpayer's;neighborhood.;A.;Only I is correct.;B.;Only IV is correct.;C.;Only III is correct.;D.;III and IV are correct.;E.;I and III are correct.;42.;Which of the;following is considered a tax?;A.;Tolls;B.;Parking meter fees;C.;Annual licensing fees;D.;A local surcharge paid on retail sales to fund public schools;E.;Entrance fees paid at national parks;43.;Earmarked;taxes are;A.;Taxes assessed only on certain taxpayers;B.;Taxes assessed to fund a specific purpose;C.;Taxes assessed for only a specific time period;D.;Taxes assessed to discourage less desirable behavior;E.;None of these;44.;Sin taxes;are;A.;Taxes assessed by religious organizations;B.;Taxes assessed on certain illegal acts;C.;Taxes assessed to discourage less desirable behavior;D.;Taxes assessed to fund a specific purpose;E.;None of these;45.;To calculate;a tax, you need to know;I. the tax base;II. the taxing;agency;III. the tax rate;IV. the purpose of;the tax;A.;Only I is correct;B.;Only IV is correct;C.;Only III is correct;D.;Items I through IV are correct;E.;I and III are correct;46.;Which of the;following is not an example of a graduated tax rate structure?;A.;Progressive tax rate structure;B.;Proportional tax rate structure;C.;U.S. Federal Income Tax;D.;Regressive tax rate structure;E.;None of these;47.;The;difficulty in calculating a tax is typically in the determination of;A.;The correct tax rate;B.;Where to file the tax return;C.;The tax base;D.;The due date for the return;E.;None of these;48.;Which of the;following is not one of the basic tax rate structures?;A.;Proportional;B.;Equitable;C.;Regressive;D.;Progressive;E.;All of these are different kinds of the basic tax rate;structures;49.;Marc, a;single taxpayer, earns $60,000 in taxable income and $5,000 in interest from;an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule;for year 2014, how much federal tax will he owe?;A.;$15,000.00;B.;$12,375.00;C.;$10,856.25;D.;$9,412.50;E.;None of these;50.;Marc, a;single taxpayer, earns $60,000 in taxable income and $5,000 in interest from;an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule;for year 2014, what is his average tax rate (rounded)?;A.;18.09%;B.;20.00%;C.;15.69%;D.;25.00%;E.;None of these;51.;Marc, a;single taxpayer, earns $60,000 in taxable income and $5,000 in interest from;an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule;for year 2014, what is his effective tax rate (rounded)?;A.;23.08%;B.;16.70%;C.;14.48%;D.;25.00%;E.;None of these;52.;Marc, a;single taxpayer, earns $60,000 in taxable income and $5,000 in interest from;an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule;for year 2014, what is his current marginal tax rate?;A.;15.00%;B.;25.00%;C.;28.00%;D.;33.00%;E.;None of these;53.;The city of;Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals;that will help pay for the city's new elementary school. This surcharge is an;example of ________.;A.;A sin tax to discourage undesirable behavior;B.;A government fine;C.;An earmarked tax;D.;Both a sin tax to discourage undesirable behavior and an;earmarked tax;E.;None of these;54.;The state of;Georgia recently increased its tax on a carton of cigarettes by $2.00. What;type of tax is this?;A.;A sin tax;B.;An excise tax;C.;It is not a tax, it is a fine;D.;Both a sin tax and an excise tax are correct;E.;None of these is correct;55.;Which of the following;is false?;A.;A proportional tax rate structure imposes a constant tax rate;while a progressive tax rate structure imposes an increasing marginal rate;related to the tax base;B.;The average tax rate changes under a proportional tax rate structure;but it is static for a progressive tax rate system;C.;An example of a proportional tax is the tax on gasoline;D.;An example of a progressive tax is the federal tax on gifts;E.;None of these;56.;Which of the;following is true?;A.;A regressive tax rate structure imposes an increasing marginal;tax rate as the tax base increases;B.;Regressive tax structures are the most common tax rate;structure;C.;An example of a regressive tax is an excise tax;D.;In terms of effective tax rates, a sales tax can be viewed as;a regressive tax;E.;None of these;57.;The ultimate;economic burden of a tax is best captured by;A.;The marginal tax rate;B.;The effective tax rate;C.;The average tax rate;D.;The proportional tax rate;E.;None of these is correct;58.;Which of the;following taxes represents the largest portion of U.S. Federal Tax;revenues?;A.;Employment taxes;B.;Corporate income taxes;C.;Individual income taxes;D.;Estate and gift taxes;E.;None of these;59.;Which of the;following represents the largest percentage of state tax revenue?;A.;Sales tax;B.;Individual income tax;C.;Other;D.;Property tax;E.;None of these;60.;Which of the;following is true regarding use taxes?;A.;A use tax is relatively easy to enforce compared to a sales;tax.;B.;Use taxes attempt to eliminate any tax advantage of purchasing;goods out of state.;C.;Use taxes encourage taxpayers to buy goods out of state to;avoid paying sales tax in their home state.;D.;A use tax is generally a progressive tax.;E.;None of these is true.;61.;Which of the;following is true regarding real property taxes and personal property;taxes?;A.;Personal property taxes are assessed on permanent structures;and land;B.;Real property taxes are assessed on cars and boats;C.;All U.S. states currently impose personal property taxes;D.;Real property taxes are generally easier to administer than;personal property taxes;E.;None of these is true;62.;Which of the;following statements is true?;A.;Municipal bond interest is subject to explicit federal tax;B.;Municipal bond interest is subject to implicit tax;C.;Municipal bonds typically pay a higher interest rate than;corporate bonds with similar risk;D.;All of these are true;E.;None of these is true

 

Paper#38049 | Written in 18-Jul-2015

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