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Federal Taxation

Business

Quiz 19 :

Gross Income: Inclusions

Quiz 19 :

Gross Income: Inclusions

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Which one of the following items is not considered gross income for tax purposes?
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Multiple Choice
Answer:

Answer:

C

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In common law states,all income is split evenly between the two spouses.
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True False
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Answer:

False

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Under the tax concept of income,all realized income is recognized and subject to tax.
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True False
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Answer:

False

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Gross income may be realized when a taxpayer receives economic benefit even if no cash is received.
True False
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The wherewithal-to-pay concept provides that a tax should be collected when the taxpayer has the financial resources to pay the tax.
True False
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Ellen,a CPA,prepares a tax return for Frank,a plumber,in exchange for installing a new sink.Since no cash changed hands,neither taxpayer is required to report any income.
True False
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Gross income is limited to amounts received in the form of cash.
True False
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Earnings of a minor child are taxed to the child regardless of the state's property law system.
True False
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In community property states,income from separate property owned before marriage is always considered separate income after marriage.
True False
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AAA Corporation distributes an automobile to Alexandria,a shareholder,in lieu of a cash dividend.Alexandria must report the value of the automobile as dividend income.
True False
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The portion of a taxpayer's wages that are garnished by court order and forwarded to pay a delinquent bank loan are not taxable income to the taxpayer.
True False
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Under both the accounting and tax law concepts of income,income must be "realized."
True False
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For federal income tax purposes,income is allocated between a husband and wife depending on the state of residence.
True False
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Internal Revenue Code Section 61 provides an inclusive list of all possible items taxed under the Code.
True False
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A taxpayer may not avoid responsibility for payment of income taxes by assigning the income to a third party.
True False
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Under the economist's definition,unrealized gains,as well as gifts and inheritances,are income.
True False
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Except as otherwise provided,gross income means all income from whatever source derived.
True False
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Gregory receives 100 shares of stock from his employer as a year-end bonus.The fair market value of the stock should be included in Gregory's income for the year.
True False
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In community property states,income is generally taxed to the spouse who earned it.
True False
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Which of the following criteria is not required to be met under the tax concept of income?
Multiple Choice
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