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

federal tax law.
The U. S. House Ways and Means Committee is responsible for drafting new federal tax legislation.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-09 Identify the three primary sources of
federal tax law.
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 32.
Award: 10.00 points
 33.
Award: 10.00 points
 34.
Award: 10.00 points
Both the U.S. House of Representatives and the U.S. Senate must vote to approve a new federal tax bill before the bill is signed into law by the President.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-09 Identify the three primary sources of
federal tax law.
Treasury regulations are tax laws written by the Treasury Department.
True
False
Regulations are not laws. Laws can be enacted only by Congress.
References
True / False Difficulty: 2 Medium Learning Objective: 01-09 Identify the three primary sources of
federal tax law.
Which of the following is not characteristic of a tax?
A tax is compulsory.
A tax is intended to punish unacceptable behavior.
A tax is levied by a government.
All of these choices are characteristics of a tax.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Define tax, taxpayer, incidence, and
jurisdiction.
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 35.
Award: 10.00 points
 36.
Award: 10.00 points
 37.
Award: 10.00 points
The state of Virginia charges motorists 50 cents for every trip across a toll bridge over the James River. This charge is an example of a(n):
User's fee
Transaction-based tax
Activity-based tax
Excise tax
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Define tax, taxpayer, incidence, and
jurisdiction.
The city of Mayfield charges individuals convicted of DWI (driving while intoxicated) $500 for the first conviction and $2,000 for any subsequent
conviction. These charges are an example of a(n):
User's fee
Transaction-based tax
Activity-based tax
Government penalty
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Define tax, taxpayer, incidence, and
jurisdiction.
The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms.
Lacey, by $45. Who bears the incidence of the property tax increase?
Mr. Janey
Ms. Lacey
Both Mr. Janey and Ms. Lacey
Neither Mr. Janey nor Ms. Lacey
Mr. Janey shifted only $540 ($45 × 12 months) of the $1,200 tax increase to Ms. Lacey by increasing her rent.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Define tax, taxpayer, incidence, and
jurisdiction.