ACCT 351 Final Exam Quizzes
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Jan 9, 2024
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Final Exam Quizzes
Chapter 16 Quiz
A book-tax difference is favorable when the difference indicates that taxable income
is ________________ book (financial reporting) income.
Select the letter of the phrase that makes the above statement true.
Answer: Less than
The dividends received deduction (DRD) is designed to help prevent corporate
earnings from receiving:
Answer: 3 or more levels of taxation
Larger corporations are generally required to complete a Schedule ________ to
report their book-tax differences. Small corporations generally complete a Schedule
________ to report their book-tax differences.
Select the letter of the BEST phrase that makes the above statements true.
Answer: M-3, M-1
How frequently are corporate taxpayers expected to make estimated tax payments to
the Federal government?
Answer: Quarterly
Why did the Federal government create “controlled group” classifications (parent-
subsidiary, brother-sister, and combined)?
Answer:
To prevent firms from obtaining greater tax savings by splitting up a large
corporation into multiple smaller corporations
Chapter 17 Quiz
A company is required to record a deferred tax _______ when events in the
current year for a company require it to pay additional tax in a future period.
Answer: Liability
TRUE or FALSE. ASC’s primary objectives to recognize current tax
liabilities/assets and deferred tax liabilities/assets relate to income tax
amounts on the income statement.
Answer: False
Depreciation is a common example of a __________ book-tax difference.
Nondeductible tax penalties and fines are an example of a _________
book-tax difference.
Answer: Temporary, Permanent
Final Exam Quizzes
Which of the following are sources of potential future taxable income used to
assess whether a deferred income tax asset will or will not be realized?
Answer: All of them, A-D (Tax planning strats, future reversals of existing temp differences
and COs, Expected future taxable income exclusive of reversing temp doffs and COs,
Taxable income in prior carryback year(s))
The following percent likelihoods that a deferred tax asset will be realized would
or would not meet the
more likely than not
threshold when assessing whether
there is a need for a valuation allowance:
Answer: Only C and D (60% and 80%) (above 50)?
Chapter 20 Quiz
Trian Structures is a partnership with three partners, Mick, Wayne, and
David. Trian has one loan related to the business. Only Wayne has
legal responsibility for the debt if the partnership fails to pay the debt.
What type of debt is the loan based on the classifications of debt in
Ch. 20?
Answer: A Recourse Loan
Which of the following is
NOT
one of the ways a partnership can
reward a partner for performing services for the partnership?
Answer: all of the above are ways (give capital interest, give profit interest,
some sort of guaranteed payment
What is the name of the schedule that a partnership prepares separately
for each one of its partners describing the partner’s individual share of
the partnership’s ordinary business income (loss) and separately stated
items for each year?
Answer: Schedule K-1
One of the benefits for partnerships (in comparison with corporations) is
that, if the partnership has a loss, it can “flow through” to offset other
sources of taxable income for the partner. However, there were several
limitations discussed in the chapter where a partner cannot deduct the
loss on his/her/it’s tax return. Which of the following is
NOT
one of
those limitations?
Answer: Profits Interest Limitation
A partnership can file for an automatic extension of its filing
date for its tax
return by filing which of the below forms?
Answer: Form 7004
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Related Questions
sa
arrow_forward
Name:
Activity Worksheet #4 (Chapter 4)
TRUE/FALSE
Personal income taxes are paid only on your taxable income.
1.
The key to reducing one's tax liability is to reduce taxable income rather than gross
2.
income.
MULTIPLE CHOICE
3. Which of the following would be considered smart financial planning?
a. Turn all your income tax planning over to someone else
b. Withhold too much income in order to receive a refund next year.
c. Ignore the impact of income taxes in your personal financial planning
d. Contribute to your employer-sponsored 401(k) retirement plan at least up to the amount
of the employer's matching contribution
taxes are based on one's ability to pay
a. Progressive
b. Regressive
c. Marginal
d. All of these
5. Dave Scott's total income is $42,000, but his taxable income is only $34,050. Therefore, his tax
percent
liability (what he owes in taxes) is 4,694. Dave's average tax rate is approximately
С. 15
а. 11
b. 14
d. 25
6. Jeff is trying to decide whether to sell his baseball…
arrow_forward
What causes book-tax differences? (
000
Planning current business transactions to reduce tax costs
Recognizing different revenues and expenses under GAAP and tax rules
O Paying taxes today to avoid paying higher taxes in the future
O Using separate sets of books to track GAAP and tax revenues and expenses
A
arrow_forward
Performing Accounting Research
When a company is uncertain as to the disposition of a tax position, it becomes a question as to the amount of tax benefit to recognize in the financial statements. Resolution of tax positions may take years. A company is trying to determine how to estimate the benefit to recognize related to an
anticipated tax settlement with a taxing authority.
What guidance is available in the Codification in reporting this information?
FASB ASC 0
0
Check
X
x
0
arrow_forward
Ma3.
e general rate reduction applies ONLY to ________.
Question content area bottom
Part 1
Choose the correct answer.
A.
income of CCPCs
B.
capital gains
C.
property income of Canadian corporations
D.
income of corporations that is NOT subject to other tax benefits
arrow_forward
O d. you cannot make changes to these fields
QUESTION 7
How are the linked accounts for CPP different from the linked accounts for income tax -
O a. CPP has a linked liability account only; income tax has an expense account only
Ob. CPP has a linked expense account only; income tax has a liability account only
Oc. CPP has both linked liability and expense accounts; income tax has a liability account only
d. none of the above
QUESTION 8
Creating an Accountant s Copy of your data allows your accountant to
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not use ai please
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QUESTION 1
Tax revenue is a major source of government income and some governments are
[25 MARKS]
tempted to increase the tax rates so that they can earn more income.
(a) Outline why governments levy taxes on companies and individuals.
Marks)
(15
(b) Discuss the implications of high tax rates
Marks)
QUESTION 2
(a) State any four (4) objectives of taxation.
(10
[25 MARKS]
(4
marks)
(b) Do you think it is a good idea for the government of Namibia to tax the informal
sector? Support your answer with relevant facts.
Marks)
(15
(c) What do you think the government of Namibia can do to widen the tax net in the
country?
Marks)
END
TOTAL MARKS [50]
(6
arrow_forward
Question Content AreaKrista is a CPA who helps her clients minimize their overall tax liability. What function is she performing? a. Tax evasion b. Tax planning c. Tax deferral d. Tax preparation
arrow_forward
Exercise 5-4A (Static)
Under which circumstances could the percentage method be used to determine federal income tax withholding amounts? (You may
select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and
double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be
automatically graded as incorrect.)
@
2
W
? When the employee's taxable income exceeds the maximum amount on the appropriate wage-bracket table
? When computational accuracy is critical
? When using a computerized accounting system to compute payroll deductions
? When using a manual accounting system for a small number of low-pay employees
F2
#
3
JUL
7
E
80
F3
$
4
a
F4
R
.
%
5
U
8
DII
F8
ZAO
1
(
DD
9
F9
)
0
0
W
F10
S D F G H J K L
P
X
F11
>
arrow_forward
Give a best solution for this question
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Can I have some help with this practice question?
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4
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- saarrow_forwardName: Activity Worksheet #4 (Chapter 4) TRUE/FALSE Personal income taxes are paid only on your taxable income. 1. The key to reducing one's tax liability is to reduce taxable income rather than gross 2. income. MULTIPLE CHOICE 3. Which of the following would be considered smart financial planning? a. Turn all your income tax planning over to someone else b. Withhold too much income in order to receive a refund next year. c. Ignore the impact of income taxes in your personal financial planning d. Contribute to your employer-sponsored 401(k) retirement plan at least up to the amount of the employer's matching contribution taxes are based on one's ability to pay a. Progressive b. Regressive c. Marginal d. All of these 5. Dave Scott's total income is $42,000, but his taxable income is only $34,050. Therefore, his tax percent liability (what he owes in taxes) is 4,694. Dave's average tax rate is approximately С. 15 а. 11 b. 14 d. 25 6. Jeff is trying to decide whether to sell his baseball…arrow_forwardWhat causes book-tax differences? ( 000 Planning current business transactions to reduce tax costs Recognizing different revenues and expenses under GAAP and tax rules O Paying taxes today to avoid paying higher taxes in the future O Using separate sets of books to track GAAP and tax revenues and expenses Aarrow_forward
- Performing Accounting Research When a company is uncertain as to the disposition of a tax position, it becomes a question as to the amount of tax benefit to recognize in the financial statements. Resolution of tax positions may take years. A company is trying to determine how to estimate the benefit to recognize related to an anticipated tax settlement with a taxing authority. What guidance is available in the Codification in reporting this information? FASB ASC 0 0 Check X x 0arrow_forwardMa3. e general rate reduction applies ONLY to ________. Question content area bottom Part 1 Choose the correct answer. A. income of CCPCs B. capital gains C. property income of Canadian corporations D. income of corporations that is NOT subject to other tax benefitsarrow_forwardO d. you cannot make changes to these fields QUESTION 7 How are the linked accounts for CPP different from the linked accounts for income tax - O a. CPP has a linked liability account only; income tax has an expense account only Ob. CPP has a linked expense account only; income tax has a liability account only Oc. CPP has both linked liability and expense accounts; income tax has a liability account only d. none of the above QUESTION 8 Creating an Accountant s Copy of your data allows your accountant toarrow_forward
- not use ai pleasearrow_forwardQUESTION 1 Tax revenue is a major source of government income and some governments are [25 MARKS] tempted to increase the tax rates so that they can earn more income. (a) Outline why governments levy taxes on companies and individuals. Marks) (15 (b) Discuss the implications of high tax rates Marks) QUESTION 2 (a) State any four (4) objectives of taxation. (10 [25 MARKS] (4 marks) (b) Do you think it is a good idea for the government of Namibia to tax the informal sector? Support your answer with relevant facts. Marks) (15 (c) What do you think the government of Namibia can do to widen the tax net in the country? Marks) END TOTAL MARKS [50] (6arrow_forwardQuestion Content AreaKrista is a CPA who helps her clients minimize their overall tax liability. What function is she performing? a. Tax evasion b. Tax planning c. Tax deferral d. Tax preparationarrow_forward
- Exercise 5-4A (Static) Under which circumstances could the percentage method be used to determine federal income tax withholding amounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) @ 2 W ? When the employee's taxable income exceeds the maximum amount on the appropriate wage-bracket table ? When computational accuracy is critical ? When using a computerized accounting system to compute payroll deductions ? When using a manual accounting system for a small number of low-pay employees F2 # 3 JUL 7 E 80 F3 $ 4 a F4 R . % 5 U 8 DII F8 ZAO 1 ( DD 9 F9 ) 0 0 W F10 S D F G H J K L P X F11 >arrow_forwardGive a best solution for this questionarrow_forwardCan I have some help with this practice question?arrow_forward
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