Principles of Taxation for Business and Investment Planning 2022 25th Edition by Sally Jones Test ba

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References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the taxes levied by local
governments.
A state government may levy either a sales tax or a use tax on consumers but not both.
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False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Describe the taxes levied by state
governments.
Sellers of retail goods are responsible for collecting sales tax from their customers and remitting the tax to the state government.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-04 Describe the taxes levied by state
governments.
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
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Describe the taxes levied by state
governments.
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The majority of state governments raise revenue from both personal and corporate income taxes.
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False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Describe the taxes levied by state
governments.
The federal government imposed the first income tax to raise money to fight the War of 1812.
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False
References
True / False Difficulty: 1 Easy Learning Objective: 01-05 Describe the taxes levied by the
federal government.
The U.S. Constitution gives the federal government the power to impose a tax on income from whatever source derived.
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False
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Describe the taxes levied by the
federal government.
The federal government collects more revenue from the corporate income tax than from the individual income tax.
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False
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Describe the taxes levied by the
federal government.
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The federal government does not levy property taxes or a general sales tax.
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References
True / False Difficulty: 1 Easy Learning Objective: 01-05 Describe the taxes levied by the
federal government.
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
References
True / False Difficulty: 2 Medium Learning Objective: 01-07 Summarize why different jurisdictions
compete for revenues from the same taxpayer.
The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.
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False
References
True / False Difficulty: 1 Easy Learning Objective: 01-07 Summarize why different jurisdictions
compete for revenues from the same taxpayer.
Fewer than half of the state governments depend on some form of gambling as a source of revenue.
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False
References
True / False Difficulty: 2 Medium Learning Objective: 01-08 Discuss the reasons why governments
modify their tax systems.
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According to the U.S. Supreme Court, states may require businesses to collect sales tax based on the residency of the purchaser.
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False
In 2018, by a vote of 5-4 (in favor of South Dakota and against online retailer Wayfair), the Supreme Court decided that states can require merchants to
collect sales taxes for purchases by residents within the state, even if the merchant doesn’t have a "physical presence" in the state.
References
True / False Difficulty: 2 Medium Learning Objective: 01-08 Discuss the reasons why governments
modify their tax systems.
The Internal Revenue Code is written by the Internal Revenue Service.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-09 Identify the three primary sources of
federal tax law.
The U.S. Constitution requires that federal tax legislation begins in the Senate.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-09 Identify the three primary sources of