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Which of the following statements is / are correct?
1. Some tax credits are refundable.
2. Some tax credits are nonrefundable.
a. 1 only.
b. 2 only.
c. Both 1 and 2.
d. Neither 1 nor 2.
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- 16. Which of the following is NOT correct? a.Tax credits may be refundable or non-refundable. b. Income from capital related transactions is an example of an exempt income for income tax purposes. c.Tax credits are tax previously paid, or an amount used to reduce tax liability if certain conditions are met. d.Tax Relief is income that is not subject to tax.It is the place where an authority has the right to impose and collect taxes. * a. Source b. Situs c. Both a and b d. None of the aboveDifference between tax deduction and tax credit. Give example of each. Some tax credits are referred to as refundable. What does this mean? Declining balance method of CCA?
- Statement 1: All items of gross income, legitimate or not, are taxable unless exempted by law or treaty. Statement 2: All items of deductions legitimate or not, are deductible unless exempted by law or treaty. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is trueWhich of the following is an acceptable method of accounting under the tax law? The accrual method The hybrid method The cash method All of the above are acceptable None of the above1. A temporary difference arises when an element of income is reported for tax purposes in the period: a. After it is reported in financial income and before it is reported in financial income. b. After that is reported in financial income. c. Before it is reported in financial income. d. It will have no effect on the taxable amounts.
- Which is NOT a remedy in double taxation?a. Application of tax treaty reliefb. Payment of the taxc. Tax payment is an expensed. Treatment of the paid tax as creditWhich is not a primary source of tax law? A. Tax Court Case O B. All of these are. C. Proposed Regulation O D. Revenue Ruling E. None of these are. OF. IRS Notice20. A temporary difference arises when a revenue item is reported for tax purposes in a period After it is reportedin financial income Before it is reportedin financial income No Yes No No Yes No Yes Yes
- 5. How do you call a deductible temporary difference? a. Current tax asset. b. Deferred tax asset. c. Current tax liability. d. Deferred tax liability.7. It means income (in the broad sense) excluding income which is by statutory provisions or otherwise exempt from the tax imposed by law. Gross Income None of the choices Net assets Net incomeProperty taxes are considered: a. imposed tax revenues. b. derived tax revenues. c. voluntary nonexchange transactions. d. exchange transactions.