Accounting Online Program US Tax Accounting

Question 1

Which federal agency administers the US tax code?

Accepted Answer

IRS

Answer

SEC

Answer

FASB

Answer

PCAOB

Question 2

For federal income tax purposes, what is the standard deduction?

Accepted Answer

A fixed dollar amount taxpayers can deduct without itemizing

Answer

The deduction only available to businesses

Answer

The amount equal to total charitable contributions

Answer

A deduction only available to senior citizens

Question 3

Which of the following is an example of a tax deduction?

Accepted Answer

Mortgage interest deduction

Answer

Child tax credit

Answer

Earned income credit

Answer

Education credit

Question 4

What is the tax treatment of a long-term capital gain under US federal law?

Accepted Answer

Taxed at preferential (lower) rates of 0%, 15%, or 20%

Answer

Taxed at ordinary income rates

Answer

Exempt from all federal taxes

Answer

Taxed at a flat rate of 35%

Question 5

What does FICA stand for in US payroll tax accounting?

Accepted Answer

Federal Insurance Contributions Act

Answer

Federal Income and Corporate Assessment

Answer

Financial Income Compliance Authority

Answer

Federal Internal Cost Allocation

Question 6

Which accounting method is generally required for businesses with average annual gross receipts exceeding $30 million?

Accepted Answer

Accrual method

Answer

Cash method

Answer

Installment method

Answer

Percentage-of-completion method