Timing in Taxation Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. All of the following are what the U.S. Supreme Court states are four events that trigger the realization of a gain or loss, EXCEPT:

Question 2 2. The realization principle states that you pay tax on goods and services sold when:

Question 3 3. The realization principles states that you categorize money from goods sold as what until they are delivered?

Question 4 4. The timing aspect of the realization principle states that:

Question 5 5. Which of the following best describes the following bond? You purchase a bond for $142, and it has a face value of $1000. It matures in 20 years and doesn't pay interest over the life of the loan.

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Question 6 6. What is a risk of a zero-coupon bond?

Question 7 7. Why would an investor purchase a zero-coupon bond?

Question 8 8. Consider the following scenario: You purchase a 20-year bond with a par value of $250,000. Your price is $241,000. Would you need to declare the OID amount on your taxes?

Question 9 9. What are the rules and regulations that must be followed when reporting all financial data?

Question 10 10. What accounting principle states that people involved in a transaction should not be personally related?

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Question 11 11. What accounting principle requires having the ability to rely on documented information to record financial data?

Question 12 12. When a criminal case is tried, the stenographer writes down every word of the proceeding. How does the principle of monetary measurement differ?

Question 13 13. The method of accounting that recognizes revenue when money is received and expenses when bills are paid is called:

Question 14 14. Which of the following is NOT a characteristic of accrual basis accounting?

Question 15 15. What is the biggest difference between cash basis accounting and accrual basis accounting?

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Question 16 16. The method of accounting that recognizes revenue when it is earned and expenses when they are incurred is called:

Question 17 17. An adverse effect of a VAT tax is that it shifts the cost burden to whom?

Question 18 18. What is a disadvantage of a VAT tax?

Question 19 19. The VAT tax is a tax added to each _____?

Question 20 20. What is one of the main Annual Accounting Schemes?

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Question 21 21. Corporation B transfers all assets to a buyer. Assets are valued at $25,000, but the stock received is worth $15,000. This is part of a reorganization. Which of the following is true?

Question 22 22. Which of the following is a qualified property under section 361 of the US tax code?

Question 23 23. As part of a reorganization, a company transfers some assets, some land and machinery to a buyer. The buyer transfers assets in return. Which of the following is true?

Question 24 24. Under Section 361 of the IRS tax code, which scenario would trigger a non-recognized gain?

Question 25 25. How does the IRS want interest reported from an installment sale?

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Question 26 26. An installment sale is a way for a business to defer _____.

Question 27 27. Installment sales are most common in the sale of which of the following?

Question 28 28. What portion does the business pay tax on in an installment sale?

Question 29 29. All of the following are aspects of the realization principle, EXCEPT:

Question 30 30. Why is the original issue discount considered interest?

Timing in Taxation Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 307: Federal Income Taxes  /  Business Courses
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