Chapter 4 pre test

Chapter 4 pre test - 1. The main purpose of taxes is to:...

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1. The main purpose of taxes is to: Student Response Value Correct Answer A.generate revenue for funding government programs. 100% B.reduce the chances of inflation. 0% C.create jobs. 0% D.discourage use of certain goods and services. 0% E.decrease competition from foreign companies. 0% Score: 1/1 Comments: 2. The ______________ property tax is based on the value of land and buildings at some point in time. Student Response Value Correct Answer A.personal 0% B.real estate 100% C.direct 0% D.proportional 0% E.regressive 0% Score: 1/1 Comments:
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3. Taxable income is used to compute a person's: Student Response Value Correct Answer A.exemptions. 0% B.income tax. 100% C.deductions. 0% D.capital gains. 0% E.exclusions. 0% Score: 1/1 Comments: 4. A $2,000 deposit to a tax-deferred retirement account for a person in a 25 percent tax bracket would result in a reduced tax bill of: Student Response Value Correct Answer A.$2,000 0% B.$1,500 0% C.$1,200 0% D.$500 100% E.$300 0% General Feedback: $2,000 x .25 = $500 Score: 1/1
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Comments: 5. A taxpayer with a taxable income of $47,856 and a total tax bill of $5,889 would have an average tax rate of ____ percent. Student Response Value Correct Answer A.8.6 0% B.10.3 0% C.12.3 100% D.14.2 0% E.16.7 0% General Feedback: $5,889/$47,856 = .123 or 12.3% Score: 1/1 Comments: 6. Which of the following would result in a reduction of taxable income? Student Response Value Correct Answer A.portfolio income 0% B.tax credits 0% C.exclusions 100% D.passive income 0% E.earned income 0%
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Score: 0/1 Comments: 7. Money received in the form of dividends or interest is classified as ____________ income. Student Response Value Correct Answer A.passive 0% B.earned 0% C.excluded 0% D.capital gain 0% E.investment 100% Score: 1/1 Comments: 8. Which one of the following is not included in gross income? Student Response Value Correct Answer A.Tax credit. 0% B.Exemption. 0% C.Exclusion. 100% D.Earned income. 0% E.Portfolio income. 0% Score:
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0/1 Comments: 9. George Washburn had earnings from his salary of $34,000, interest on savings of $800, a contribution to a traditional individual retirement account of $1,500, and dividends from mutual funds of $600. George's adjusted income (AGI) would be: Student Response Value Correct Answer A.$33,900. 100% B.$34,000. 0% C.$34,600. 0% D.$34,800. 0% E.$35,400. 0% General Feedback: $34,000 + $800 - $1,500 + $600 = $33,900 Score: 1/1 Comments: 10. Reductions from gross income for such items as individual retirement account contributions and alimony payments will result in: Student Response Value Correct Answer A.adjusted gross income. 100% B.taxable income. 0% C.earned income. 0% D.passive income. 0% E.total exclusions. 0%
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Score: 1/1 Comments: 11. _____________ are
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This note was uploaded on 09/08/2011 for the course BAD 301 taught by Professor Null during the Fall '11 term at GWU.

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Chapter 4 pre test - 1. The main purpose of taxes is to:...

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