Test Bank all Chapter, Answer at the end of

Principles of Taxation for Business and Investment Planning 2023 Edition, 26e By Sally Jones, Shelley Rhoades- Catanach, Sandra Callaghan, Thomas Kubick

(Test Bank all Chapter, Answer at the end of each Chapter)

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Version 1 1 Chapter 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.1) Payment of a tax entitles the payer to a specific good or service from the government.⊚ true ⊚ false

2) A user fee entitles the payer to a specific good or service from the government.⊚ true ⊚ false

3) A tax is intended to deter or punish unacceptable behavior.⊚ true ⊚ false

4) A tax is a payment to support the cost of government.⊚ true ⊚ false

5) Under U.S. tax law, corporations are entities separate and distinct from their shareholders.⊚ true ⊚ false

6) The person who pays a tax directly to the government always bears the economic incidence of the tax.⊚ true ⊚ false

7) In some cases, the payer of a tax can shift the economic incidence of the tax to a third party.⊚ true ⊚ false

8) The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.⊚ true ⊚ false

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Version 1 2 9) The U.S. government has jurisdiction to tax individuals who are not U.S. citizens or permanent U.S. residents but who earn income from a source within the United States.⊚ true ⊚ false

10) The U.S. government does not have jurisdiction to tax U.S. citizens who are permanent residents of another country.⊚ true ⊚ false

11) A tax with a graduated rate structure must have at least two brackets of tax base.⊚ true ⊚ false

12) A sales tax is an example of a transaction-based tax.⊚ true ⊚ false

13) A tax on net income is an example of a transaction-based tax.⊚ true ⊚ false

14) A sales tax is an example of an activity-based tax.⊚ true ⊚ false

15) Ad valorem property taxes are the major source of revenue for local governments.⊚ true ⊚ false

16) Taxes on personal property are more difficult to administer and enforce than taxes on real property.⊚ true ⊚ false

17) A state government may levy either a sales tax or a use tax on consumers but not both.⊚ true ⊚ false

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Version 1 3 18) Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.⊚ true ⊚ false

19) Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.⊚ true ⊚ false

20) The majority of state governments raise revenue from both personal and corporate income taxes.⊚ true ⊚ false

21) The federal government imposed the first income tax to raise money to fight the War of 1812.⊚ true ⊚ false

22) The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.⊚ true ⊚ false

23) The federal government collects more revenue from the corporate income tax than from the individual income tax.⊚ true ⊚ false

24) The federal government does not levy property taxes or a general sales tax.⊚ true ⊚ false

25) A business that operates in more than one state is required to pay state income tax only to the state in which it is incorporated.⊚ true ⊚ false

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