Issues in Taxation - Multiple choice questions

1) The payment items that should be budgeted first are

A. variable expenses
B. unplanned living expenses
C. fixed expenses
D. investment funds

2) The current financial position (including net worth) of an individual or family is best presented with the use of a

A. cash flow statement
B. time value of money report
C. budget
D. balance sheet

3) A family with $45,000 in assets and $22,000 of liabilities would have a net worth of

A. $23,000
B. $67,000
C. $45,000
D. $22,000

4) Which of the following statements regarding tax credits is true?

A. Tax credits provide a greater tax benefit the greater the taxpayer's marginal tax rate.
B. None of the answer choices are correct.
C. Tax credits reduce taxable income dollar for dollar.
D. Tax credits reduce taxes payable dollar for dollar.

5) Which of the following statements is true?

A. Individuals generally report all excluded income on statements supporting their tax returns.
B. Always report annual licensing fees.
C. All income, whether realized or unrealized, is reported on the individual tax return.
D. Individuals generally report deferred income on their tax returns.

6) All of the following are for AGI deductions EXCEPT

A. rental and royalty expenses
B. charitable contributions
C. moving expenses
D. business expenses

7) Which judicial doctrine means that a court will rule consistently with its previous rulings and the rulings of higher courts with appellate jurisdiction?

A. The Goldman rule
B. Stare decisis
C. Judicial hierarchy
D. Judicial consistency

8) The regulation with the highest authoritative weight is the
A. interpretative regulation
B. legislative regulation
C. procedural regulation
D. proposed regulation

9) Jaime recently found a "favorable" trial level court opinion directly on point for her tax question. Which trial level court would he prefer to have issued the opinion?
A. District Court
B. Divorce Court
C. Tax Court
D. Circuit Court