Chapter 7 - Individual Income Tax Computation and Tax Credits
Individual Income Tax Computation and Tax Credits
1. [LO 1] What is a tax bracket? What is the relationship between filing status and the width
Chapter 5 - Gross Income and Exclusions
Gross Income and Exclusions
[LO 1] Based on the definition of gross income in 61 and related regulations, what is the
general presumption regarding the taxability
Chapter 8 - Business Income, Deductions, and Accounting Methods
Business Income, Deductions, and Accounting Methods
[LO 1] What is an ordinary and necessary business expenditure?
Ordinary and necessary im
Chapter 11 - Investments
1. [LO 1] Describe how interest income and dividend income are taxed. What are the
similarities and differences in their tax treatment?
Because they are cash method taxp
Chapter 14 - Tax Consequences of Home Ownership
Tax Consequences of Home Ownership
1. [LO 1] How does a taxpayer determine whether a dwelling unit is treated as a residence or
nonresidence for tax purposes?
Chapter 12 - Compensation
1. [LO 1] Shane is an employee who has had a relatively consistent income over the
years. His withholding is pretty much right on target with his actual tax liability
Chapter 3 - Tax Planning Strategies and Related Limitations
Tax Planning Strategies and Related Limitations
[LO1] The goal of tax planning is to minimize taxes. Explain why this
statement is not true.
1. Which of the following does NOT need to be completed separately if a worksheet is
prepared? a) Trial balance b) Income statement c) Balance sheet d) Statement of owner's
2. When a trial balance is in balance: a) adjusting entries are not require
Which statement about QuickBooks reports is not true?
50. a. The Balance Sheet report shows the assets, liabilities, and equity balances as of a
b. A detailed report, showing all transactions affecting balance sheet accounts, can be
1. Accounting for the financial activity of any company involves
repetitive recording of day-to-day business activities
2. Recording common business activities does not include
3. Summaries of the financial information of a company ar
Chapter 13 - Retirement Savings and Deferred Compensation
Retirement Savings and Deferred Compensation
1. [LO 1, 2] How are defined benefit plans different from defined contribution plans? How are
Chapter 10 - Property Dispositions
1. [LO 1] Compare and contrast different ways in which a taxpayer triggers a realization
event by disposing of an asset.
A realization event for tax
Chapter 4 - Individual Income Tax Overview
Individual Income Tax Overview
[LO 1] How are realized income, gross income, and taxable income similar, and
how are they different?
Realized income is more bro
Chapter 2 - Tax Compliance, the IRS, and Tax Authorities
Tax Compliance, the IRS, and Tax Authorities
[LO1] Name three factors that determine whether a taxpayer is required to file a
Chapter 1 - An Introduction to Tax
An Introduction to Tax
[LO1] Jessicas friend Zachary once stated that he couldnt understand why
someone would take a tax course. Why is this a rather nave view?