Copyright

Accounting 307: Federal Income Taxes Final Exam

Free Practice Test Instructions:

Choose your answer to the question and click 'Continue' to see how you did. Then click 'Next Question' to answer the next question. When you have completed the free practice test, click 'View Results' to see your results. Good luck!

Question 1 1. What is the biggest difference between cash basis accounting and accrual basis accounting?

Question 2 2. What is a disadvantage of a VAT tax?

Question 3 3. What are the rules and regulations that must be followed when reporting all financial data?

Question 4 4. The realization principle states that you pay tax on goods and services sold when:

Question 5 5. The method of accounting that recognizes revenue when money is received and expenses when bills are paid is called:

Question 6 6. Which of the following is TRUE of donating ordinary income property?

Question 7 7. Bob bought a share of stock for $100 and donated it to charity three years later on March 1. The share was priced at $150 the day he gave it to the charity. On December 31st it was worth $175. What amount can he deduct on his taxes?

Question 8 8. Which of the following is TRUE of capital gain property?

Question 9 9. Steve bought a share of stock for $100 and donated it to charity two months later. On the date of the donation the share was worth $150. How much money can Steve deduct on his taxes?

Question 10 10. Which is TRUE when donating stock shares that have risen in the value?

Question 11 11. Tax levied by the government, based on the value of real estate, is called ____ tax.

Question 12 12. Which of the following is NOT a characteristic of a capital expenditure?

Question 13 13. Betty and Bert start a bicycle repair business. Betty runs the shop and Bert fixes the bikes. Bert repairs Bea's bike, but he forgets to tighten the bolts on her seat. Bea falls off the bike and is injured. She sues the bike shop and is awarded a money judgment. Which of the following is true?

Question 14 14. If you sell products whose cost increases over time, which of the following methods will result in a lower taxable income for your business?

Question 15 15. You have purchased an immediate annuity and it is a lifetime annuity. However, you withdraw money above and beyond the annual payment. How is this withdrawal treated?

Tell us about yourself

Are you a student or a teacher?

I am a student I am a teacher

Accounting 307: Federal Income Taxes Final Free Practice Test Instructions

Choose your answer to the question and click 'Continue' to see how you did. Then click 'Next Question' to answer the next question. When you have completed the free practice test, click 'View Results' to see your results. Good luck!

Accounting 307: Federal Income Taxes  /  Business Courses
Support