Test Bank For Personal Financial Planning 14th Edition by Billingsley

Test Bank For Personal Financial Planning 14th Edition by Billingsley

Chapter 3—Preparing Your Taxes

1. The federal personal income tax is a progressive tax.a.  Trueb.  FalseANSWER:   TruePOINTS:   1DIFFICULTY:   EasyLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Remembering  2. The federal personal income tax is a flat tax.a.  Trueb.  FalseANSWER:   FalsePOINTS:   1DIFFICULTY:   EasyLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Remembering  3. Tax avoidance is legal, tax evasion is illegal.a.  Trueb.  FalseANSWER:   TruePOINTS:   1DIFFICULTY:   EasyLEARNING OBJECTIVES:   PFIN.BILL.17.3-5 – LO: 3-5NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Remembering  4. One’s marginal tax rate is typically lower than one’s average tax rate.a.  Trueb.  FalseANSWER:   FalsePOINTS:   1DIFFICULTY:   ModerateLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Analyzing  5. One’s average tax rate is typically lower than one’s marginal tax rate.a.  Trueb.  FalseANSWER:   TruePOINTS:   1DIFFICULTY:   ModerateLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Analyzing  6. If you have any earned income, you are required to file a tax return.a.  Trueb.  FalseANSWER:   FalsePOINTS:   1DIFFICULTY:   ModerateLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Remembering  7. The main objective of tax planning is to maximize the amount of money you keep by minimizing the amount of taxes you pay.a.  Trueb.  FalseANSWER:   TruePOINTS:   1DIFFICULTY:   EasyLEARNING OBJECTIVES:   PFIN.BILL.17.3-6 – LO: 3-6NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Understanding  8. If you are eligible to receive a tax refund, you will have to file a tax return to get the refund.a.  Trueb.  FalseANSWER:   TruePOINTS:   1DIFFICULTY:   EasyLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Remembering  9. Income tax refunds are automatically sent to those who qualify for refunds no later than April 15.a.  Trueb.  FalseANSWER:   FalsePOINTS:   1DIFFICULTY:   EasyLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Remembering  10. As a single taxpayer with no dependents, one is generally eligible to file as “head of household.”a.  Trueb.  FalseANSWER:   FalsePOINTS:   1DIFFICULTY:   EasyLEARNING OBJECTIVES:   PFIN.BILL.17.3-1 – LO: 3-1NATIONAL STANDARDS:   United States – BUSPROG: Analytic skills – BUSPROG: Analytical skillsSTATE STANDARDS:   United States – KS – DISC: Financial Analysis and Cas – DISC: Financial Analysis and Cash FlowsUnited States – AK – DISC: TaxesKEYWORDS:   Bloom’s: Remembering