Principles of business Marketing Test on Taxes
What are tax credits?
Reductions in tax liability
Which of the following is NOT a source from which tax forms can be obtained?
Schools
Which of the following is NOT a benefit of federal, state or local taxes?
Sporting events
Adjusted gross income also known as which of the following?
Taxable income
Inheritance Taxes
Taxes collected on the property left by an individuals will
What are progressive taxes?
Taxes which increase as the amount being taxed increases
Which document gives Congress the power to lay and collect taxes?
The Constitution
Taxes CANNOT be imposed on which of the following?
Thoughts and ideas
Sales tax rates vary from state to state
True
Which of the following is the simplest income tax return form?
1040EZ
What year was the first income tax proposed, but not enacted?
1812
When were monetary and fiscal policy established?
1970s
Which amendment to the Constitution outlawed poll taxes?
24th
_____________ taxes are levied on income, while _______________ taxes are levied on goods and services.
Direct; Indirect
Which of the following policies occurs when the government adjust its spending level and tax rates to monitor and influence the economy?
Fiscal policy
Which of the following policies studies behavior of the aggregate economy?
Fiscal policy
Traditional filing consist of which of the following?
Paper forms and handwritten completion
Social security taxes are withheld from an individuals paycheck.
True
Price Oriented Taxes
Usually taxes at a rate of 30-40% includes the taxes collected on money or gifts recieved from winning game shows, competition
What is a 1099 form?
. A record of untaxed earnings
What is a W-2 form?
. A record of wage and salary earnings and taxes withheld
Which of the following is an example of an excise tax?
. A tax on tobacco
What date is usually "tax day"?
. April 15
Standard tax deductions for an individual are _________________.
. Different every year
Which of the following accurately describes taxes?
. Percentage-based fees assessed by the government
Which of the following are automatically withheld from paychecks?
. Social security taxes
What are estate taxes?
. Taxes collected when a person dies
Which tax return form should a taxpayer use if he or she had a taxable income of $103,000 and will itemize deductions?
1040
What is a tax audit?
A detailed examination of a specific tax return by the IRS
Which of the following is considered a tax credit?
A reduction in taxes due to children
Which of the following is an example of an excise tax?
A tax on alcohol
Which of the following is NOT considered tax fraud?
Claiming no deductions
Sales taxes are also known as which of the following?
Consumption taxes
What are tax deductions?
Expenses subtracted from gross income to calculate taxable income
Inheritance taxes are collected on the value of a person's property after he or she dies.
False
Tax Day is always April 15th.
False
Which of the following does contractionary monetary policy NOT slow down?
Gross domestic products
Tax differed Income
Income that will be paid at a later date
Expansionary monetary policy does NOT do which of the following?
Influence macroeconomics
Which of the following is NOT included in earned income?
Interest
Which of the following comprises an individuals gross income?
Interest, dividend and earned income
IRS stands for which of the following?
Internal Revenue Service
Which of the following is NOT a benefit of e-filing?
Less tax liability
Dividend Income
includes money or cash dividends received from investments such as stock
Interest Income
interest received from the banks and savings institutions
Direct Tax
levied directly on personal or corporate income
Indirect
levied on the price of a good
Taxes
percentage based fee charged by the government on products, income, or activities
Gift Taxes
collected on personal gifts valued at $1000