PRINCIPLES OF TAXATION FOR BUSINESS AND INVESTMENT PLANNING 16TH EDITION BY JONES - TEST BANK

Chapter 01

Taxes and Taxing Jurisdictions

True / False Questions
 

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

9. A tax with a graduated rate structure must have at least two brackets of tax base. 
True    False

10. A sales tax is an example of a transaction-based tax. 
True    False

11. A tax on net income is an example of a transaction-based tax. 
True    False