Test Bank for Principles of Taxation for Business and Investment Plannin 2026 27th Edition Jones (Complete And Verified Study material) (513pages) LEARNEXAMS

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