McGraw Hill’s Taxation of Individuals and Business Entities 2022 Edition 13th Edition by Brian Spilk

References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what constitutes a tax and the
general objectives of taxation.
One key characteristic of a tax is that it is a required payment to a governmental agency.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what constitutes a tax and the
general objectives of taxation.
Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what constitutes a tax and the
general objectives of taxation.
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 10.
Award: 1.00 point
 11.
Award: 1.00 point
 12.
Award: 1.00 point
 13.
Award: 1.00 point
One benefit of a sin tax (e.g., a tax on cigarettes) is that it should increase the demand for the products being taxed.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what constitutes a tax and the
general objectives of taxation.
In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic or social objectives).
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what constitutes a tax and the
general objectives of taxation.
The two components of the tax calculation are the tax rate and the taxpayer's status.
True
False
Tax equals the tax base multiplied by the tax rate.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
The tax base for the federal income tax is taxable income.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
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 14.
Award: 1.00 point
 15.
Award: 1.00 point
 16.
Award: 1.00 point
 17.
Award: 1.00 point
A flat tax is an example of a graduated tax system.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
The main difficulty in calculating an income tax is determining the correct amount of the tax base.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
A taxpayer's average tax rate is the most appropriate tax rate to use in tax planning.
True
False
The marginal tax rate is particularly useful in tax planning because it represents the rate of taxation or savings that would apply to additional taxable
income or additional tax deductions.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
The effective tax rate, in general, provides a better depiction of a taxpayer's tax burden than the average tax rate.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
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 18.
Award: 1.00 point
 19.
Award: 1.00 point
 20.
Award: 1.00 point
 21.
Award: 1.00 point
The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
In a proportional (flat) tax rate system, the marginal tax rate will always equal the average tax rate.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
In a regressive tax rate system, the marginal tax rate will often be greater than the average tax rate.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
A sales tax is a common example of a progressive tax rate structure.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
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