ACCY 450 Quiz 1, Taxes and Taxing Jurisdictions
Chapter 1 Types of Taxes and the Jurisdictions That Use Them
True/False
1. Payment of a tax entitles the payer to a specific good or service from the government.
Answer: False (Easy; LO 1)
2. A user fee entitles the payer to a specific good or service from the government.
Answer: True (Easy; LO 1)
3. A tax is intended to deter or punish unacceptable behavior.
Answer: False (Easy; LO 1)
4. A tax is a payment to support the cost of government.
Answer: True (Easy; LO 1)
5. Under U.S. tax law, corporations are entities separate and distinct from their shareholders.
Answer: True (Easy; LO 1)
6. The person who pays a tax directly to the government always bears the economic incidence
of the tax.
Answer: False (Medium; LO 1)
7. In some cases, the payer of a tax can shift the economic incidence of the tax to a third
party.
Answer: True (Easy; LO 1)
8. The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who
are permanent U.S. residents.
Answer: True (Medium; LO 1)
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