SOLUTIONS; FOR SOUTH-WESTERN FEDERAL TAXATION CORPORATIONS, PARTNERSHIPS, ESTATES AND TRUSTS, 48TH EDITION QUESTIONS AND WITH RATIONALE

SOLUTIONS; FOR SOUTH-WESTERN FEDERAL TAXATION CORPORATIONS, PARTNERSHIPS, ESTATES AND TRUSTS, 48TH EDITION QUESTIONS AND WITH RATIONALE
Chapter 01: Understanding and Working with the Federal Tax Law
1. Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2026.LO: 1 01 - LO: 1-01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - TX - AICPA: FN-Measurement
United States - AK - AICPA: FN-Research
KEYWORDS: Bloom's: Remember
OTHER: Time: 2 min.
DATE CREATED: 1/31/2026 10:55 AM
DATE MODIFIED: 3/1/2026 1:43 PM
2. The U.S. Federal government has a provision in the Constitution that precludes deficit spending.
a. True
b. False
ANSWER: False
RATIONALE: There is no such provision, and the national debt continues to grow.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2026.LO: 1 01 - LO: 1-01
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG:
Comprehension
STATE STANDARDS: United States - AK - AICPA: FN-Measurement
KEYWORDS: Bloom's: Remember
OTHER: Time: 2 min.
DATE CREATED: 1/31/2026 10:55 AM
DATE MODIFIED: 3/1/2026 1:43 PM
3. Revenue-neutral tax laws reduce deficits.
a. True
b. False
ANSWER: False
Chapter 01: Understanding and Working with the Federal Tax Law
RATIONALE: They do not reduce deficits but do not aggravate the problem.