If you ordered the "by mail
course", then you can use the Answer Sheet
to mail in your answers or you can opt to send the answers using the online
option.
If you opted for the "online tax course" then you must complete the quiz
online. Follow the following steps to complete the 20 hour tax course online:
Read the reading material and
answer the questions on this page.
(Before you start online quiz,
review the questions on this page to be
ready to answer the questions online).
Most forms are in Adobe Acrobat PDF format.
You
will need Adobe Reader to view and print these forms. If you do not
already have Adobe Reader installed on your computer, you may
download the software for free.
Material needed to complete the
sections in this assignment:
Section 1 - Filing Basics -
Use the
IRS Publication 501 to complete
section 1.
Section 2 - Earned Income
Credit - Use
IRS
Publication 596
to complete section 2.
Section 3 - Child and Dependent Care Credit & Other Credits
- Use
IRS Publication 503 to complete
section 3.
In this section, we will review some tax rules
that affect every person who may have to file a federal income tax return. We
will cover topics such as who must file, what filing status and how
many exemptions to use. In addition, this section is about the standard
deduction and taxpayers who do not itemize their deductions.
Please use the
IRS Publication 501 to complete this
section of the tax assignment.
Section 2 - Earned Income
Credit
In this section we will review tax rules to follow in claiming the earned
income credit (EIC). The earned income credit (EIC) is a tax credit for certain
people who work and have earned income. This usually means more money in your
pocket and a reduction in the amount of of tax you owe.
46. To qualify for the Earned Income Credit in tax year 2009, your investment income must not be over
A. $ 3,100
B. $ 2,850
C. $ 2,900
D. $ 2,700
47. The credit is called the Earned Income Credit because to qualify you must
A. Be at poverty level
B. Have money in your savings
C.
Work and have earned income
D. Not be living in luxury
48. If you retire on disability, benefits you receive under your employer's
disability retirement plan (for EIC purposes) are
A. Always taxable
B. Unearned income
C. Not counted because disability is not taxable.
D. Considered earned income until you reach minimum retirement age
49. Income that is not earned income includes all of the following
EXCEPT
A. Net earnings from self-employment
B. Earnings while an inmate in a penal institution.
C. Welfare benefits.
D. Interest and dividends.
50. To qualify for the earned income credit with a qualifying
child, you must meet which tests?
A.
Joint return test, age, and Residency tests.
B.
Citizenship, Age and Qualifying relative test.
C.
Relationship, Age, Residency and Joint Return tests.
D.
None of the above.
51. Having a qualifying child who lives with you in your home for more
than 6 months meets which test?
A. Age test
B. Relationship test
C. Residency test
D. Gross income test
52. If your Earned Income Credit was denied, send Form 8862 if it was denied because
A. You loaned your dependents to your friend.
B. You claimed a dependent that was not yours.
C. You and your spouse each tried to claim the earned income credit.
D. Any of the above.
53. Your qualifying child
is your son, daughter, adopted child, grandchild, stepchild, brother, sister,
half brother, half sister, stepbrother, stepsister, or a descendant of any of
them who at the end of the year
A. Was any age if permanently and totally disabled regardless of age.
B. Was under age 19 and younger than you.
C. Was under 24 and a student and younger than you.
D. Any of the above.
54. Your son was a qualifying child of his father whom had a
higher AGI. Your son lived with both parents the same amount of time and is a
qualifying child for both of you. Then,
A. Your son's father can claim the credit because he had a higher AGI.
B. Both parents can claim the credit.
C. You and your child's father can decide which of you will take the EIC.
D. The one with the lower income can claim
the credit because he or she needs it most.
55. If you are a qualifying child of another person
A. You cannot claim the EIC.
B. You can claim the EIC as long as the other conditions are met.
C. You can claim the EIC if you qualify.
D. You can claim the EIC as long as you have children.\
56. If your EIC for any tax year after 1996 was denied or reduced for any
reason other than for a mathematical or clerical error, you must
A. Re-do your return with the correct information.
B. Not try to get the EIC credit for 5 years.
C. Attach a completed Form 8862 to your next tax return to claim the EIC.
D. Not try to get the EIC for 15 years.
57. You claimed the EIC on your 2008 tax return which you filed March 2009.
In October 2009, the IRS denied your claim and determined that your error was
due to reckless or intentional disregard for the EIC rules. As a result,
A. You cannot claim the earned income credit for tax year 2010.
B. You cannot claim the credit for tax years 2009 and 2010.
C. You cannot claim the credit for tax years 2010 through 2019.
D. You can't claim the credit for tax year 2020.
58. If you claimed the EIC on your 2008 tax return, which was filed in February
2009, and in December 2009, the IRS denied your claim and determined that your
error was due to fraud, then
A. You can't claim the credit for tax year 2010.
B. You can't claim the credit for tax year 2009 or 2010.
C. You can't claim the EIC
for tax year 2009.
D. You can't claim the EIC
for 2009 through 2018.
59. You can receive part of your EIC in your paycheck by completing form
W-5 and
A. Mailing the lower part of the form to the IRS.
B. Giving the lower part of the form to only one employer.
C. Call the IRS and explain your financial situation to a taxpayer advocate.
D. Give the form W-5 to all your employers.
60. To get part of the
earned income credit paid to you throughout the year in your paycheck, you must
A. Expect to have a qualifying child.
B. Expect that your earned income and modified adjusted gross income will
be less than $35,535 ($40,454 if you expect to file 'Married Filing Jointly' for
tax year 2010).
C. Expect to be eligible for the EIC
for tax year 2010.
D. All of the above
61. What should you do if you have more than one employer and you would
like to receive the advanced EIC payments?
A. Give a Form W-5 only to one employer
B. Give a Form W-5 to all of your employers
C. Send Form W-5 to the IRS
D. Fill out W-4 and claim fewer exemptions
62. If you receive advanced EIC payments in year 2009, you must
A. File a 2009 tax return only if you think they would find out.
B. File a 2009 tax return, even if you would not otherwise have to file.
C. File a 2009 tax return only if you earned enough to file.
D. File a return only if you can't determine if you have to file.
63. What is the amount of the Earned Income Credit you qualify for in tax year
2009 if you have three qualifying children and you earned $9,810 in wages and
have no other income and your filing status is married Filing jointly.
A. $3,930
B. $4,431
C. $457
D. $277
64. In 2009, you were 24, single, and living at home with your parents. You
worked and were not a student. You earned $7,500. Your parents cannot claim you
as a dependent. When you file your return, you
A. Can claim the Earned Income Credit because although you are not 25 yet, no
one can claim you as a dependent.
B. Can claim the Earned Income Credit because you earned less than $12,880 and
it does not matter that you are not at least age 25.
C. Live with your parents so you don't qualify for the Earned Income Credit
because your parents will already have claimed a credit.
D. Cannot claim the Earned Income Credit because you are not at least age 25.
65. If you are 'Married Filing
Jointly' and you have more than three qualifying children, to qualify for the EIC
for tax year 2009, your
income must be less than
A. $48,279
B. $43,279
C. $40,463
D. $18,440
66. In tax year 2009, you were age 25, single, and living at home with
your parents. You earned $7,500. Your parents can't claim you as a
dependent. You can claim the EIC because
A. You are not a dependent of another person.
B. You are over 25 years of age.
C. You are not using married filing separate filing status.
D. All of the above.
67. Your son is a qualifying child of both you and your son's father,
because your son meets the relationship, age and residency tests for both you
and your son's father.
The father's AGI was more than yours. You and your son's father cannot agree on
who would claim the EIC and your son lived with both of you the same amount of
time during the year. Who can claim the EIC?
A. Both you and your son's father can claim the Earned Income Credit at the
same time.
B. You can claim the credit because you are the mother and that is all that
matters.
C. You can claim the Earned Income Credit as long as the child lives with you
and it does not matter if you earned less money.
D. Your son's father is able to claim the Earned Income Credit because he earned
more money.
68. You and your son lived with your mother all year. You were over 25 year of
age. Your income is only $23,000 from your job. Your mother's only income is
$26,000 from her job. Your child meets the relationship, age, and the residency
tests for both you and your mother. If you and your mother cannot agree on who
will take the EIC, then who can take the EIC?
A. Your mother because her income was higher.
B. Your mother because she is your superior.
C. Your mother because you and your son lived in her household.
D. You because the child is your son.
69. You and your sister shared a household for the entire 2009 tax year. You have
five children who lived in the same household. You earned $20,000, and she
earned $35,000. If you and your sister don't agree on who can claim the EIC,
then your sister cannot claim the Earned Income credit because
A. You didn't sign Form 8332.
B. You are the children's parent and using the tie-breaker rule, you have the
right to not let her claim the EIC credit.
C. She earned more money and had a higher AGI and therefore she does not need
the extra money.
D. She did not care for the children as her own.
70. Earned income to meet the EIC income rules include all of the following,
EXCEPT:
A. Wages, salaries, and tips.
B. Net earnings from self-employment.
C. Gross income received as a statutory employee.
D. Interest earned from your savings account.
71. U.S. Military personnel stationed outside the United States on extended
active duty are not considered to have lived in the United States during
that duty period for purposes of EIC rules.
True
False
72. The Residency Test for purposes of the EIC rules means that the qualifying
child lived only in the U.S. for more than half of the tax year. (Not to be
confused with the residency test for dependents).
True
False
73. Welfare benefits are considered earned income for purposes of receiving the
Earned Income Credit.
True
False
74. Your child can be qualifying child of another person (whom is
not the father or mother) with a higher
modified AGI and that person can claim the EIC if you don't agree on who will
claim it.
True
False
75. If you do not have a valid social security number and you write "NO" directly on 64a of Form 1040 or line 41a
(Form 1040A) or line 9a (Form 1040EZ),
then
A. You can claim the EIC.
B. You cannot claim the EIC.
C. You cannot send in your tax return.
D. You can claim the EIC as long as you have a valid IRS ITIN Number.
76. Social security and railroad retirement benefits are not considered earned income for purposes
of the Earned Income Credit rules.
True
False
77. Unemployment compensation is considered earned income for EIC purposes
because in order to receive unemployment compensation you are required to work.
True
False
78. For Earned Income Credit purposes, the child's age does not matter if the child
is permanently and totally disabled at any time during the tax year.
True
False
79. Even if you have an approved Form 4029, all wages, salaries,
tips and other employee compensation counts as
A. Military income
B. Unearned income
C. Earned income
D. None of the above
80. Your filing status is 'Married Filing Jointly' and you have
only one qualifying child living with you for tax year 2009. Your earnings from
work are a total of $33,010, and you have no other income. What is your Earned
Income Credit amount?
A. $ 2,584
B. $ 1,189
C. $ 1,531
D. $ 2,159
Section 3 - Child and Dependent Care Credit & Other Credits
In this section we will review when you can and cannot
take the child and dependent care expenses credit. We will review how to figure
the credit. You may be able to claim the credit if you pay someone to care for
your dependent who is under age 13 or for your spouse or dependent who is not
able to care for himself or herself. To qualify, generally you must pay these
expenses so you can work or look for work.
81. If you pay someone to come to your home and care for your dependent
or spouse,
A. You may be a household employer
B. You may have to pay employment taxes
C. You may be able to claim the credit for child and dependent care expenses
D. Any of the above
82. To claim the Child and Dependent Care Expenses Credit, you
must file , or ______ if you file Form 1040A.
A. Form 2441 if you file Form
1040.
B. Schedule 2 if you file Form 1040A.
C. Either A or B above.
D. None of the above.
83. To qualify for child and dependent care expenses credit, you
A. Can pay for care so you will be able to go on vacation
B. Can hire your child who is under 19 years old
C. Can hire your aunt whom you can claim as a dependent
D. Must have a child that must live with you for more than half of the year and
meet other requirements.
84. To claim the Child and Dependent Care Credit, you (and your spouse if
you're married) must have earned income during the year. Your spouse is treated as having earned
income for any month that he or she is
A. A full-time student.
B. Physically not able to care for himself or herself.
C. Mentally not able to care for himself or herself.
D. Any of the above.
85. Generally, married couples must file a joint return to take
the child and dependent care credit. You may be able to file a separate tax
return and still take the credit if
A. You are legally separated.
B. You are living apart
from your spouse.
C. Both A and B above.
D. Your spouse signs an agreement not to claim the credit.
86. Your child and dependent care expenses must be for the care of
one or more qualifying persons such as
A. A child who is under 18 years-old when the care was provided.
B. Your dependent daughter who was under the age of 13 when the care was
provided.
C. Your parents who are perfectly able to care for themselves.
D. A person who did not live with you.
87. You take your 4-year-old child to nursery school that provides
lunch and a few educational activities as part of its pre-school child-care
service. Which one of the following would be correct?
A. You can count the total cost as child care because the costs were partly to provide
education.
B. You can count the total cost when you figure the child and dependent care
credit if lunch and the educational activities are incidental to the childcare
and the cost cannot be separated.
C. Expenses were for child's lunch so they do count.
D. All of the above
88. You pay a nanny to care for your 5-year-old son and
6-year-old daughter so you can work. You become ill and miss 5 months of work
but received sick pay. You continue to pay the nanny to care for the children
while you are ill.
A. Your absence is not a short temporary absence, and your expenses are not
qualifying care expenses because they are not work related.
B. Your absence is a short temporary absence, and your expenses are
qualifying care expenses.
C. An absence of 6 months or less is a short, temporary absence
D. An absence of more than 2 weeks may never be considered a short,
temporary absence regardless of the circumstances.
89. You place your 12 year old child in a boarding school so you can work
full-time. Which of the following would be correct?
A. You can only count the educational part of the boarding costs as
qualifying expenses
B. You can't count the boarding cost because it was not for a pre-school child
C. You can count that part of the expense in figuring your child and dependent
care credit if it can be separated from the cost of the education
D. If you place your child in boarding school, he will be away from the home
and thus you can't claim the care credit
90. The work related expenses for the Child and Dependent Care
Expenses Credit are expenses that
A. Allow you to work or look for work
B. Are not really for the qualifying person's care
C. Are for the cost of a babysitter while you and your spouse go out to eat.
D. Allow you to go on vacation from work
91. If your spouse is a student or is not able to care for him or herself,
he or she is treated as having earned income for any month that he or she is
A. Not your
dependent even if her or she lived in your home. B. Physically or mentally not able to care for him or herself or is a full
time student
C. A partially disabled spouse capable of caring for him or herself.
D. A student that is attending full time only at night
92. You can count child care expense payments you make to relatives who are
A. Not your dependents, even if they live in your home.
B. Your children who are under 19 years old, as long as they not your
dependents.
C. Your dependents for whom you (or your spouse) can claim an exemption.
D. Any of the above.
93. You, a single taxpayer, paid work related child care expenses of $3,000 in tax year 2009. You were reimbursed $2,400 by
a state social services agency. If you have two qualifying dependents, which of the following is correct regarding the
child and dependent care expenses credit?
A. Since you were reimbursed, you can't take the child and dependent care
expenses credit
B. You can use $1,000 to figure your credit
C. You can use $600 to figure
your credit
D. You can use $2,600 to figure your credit
94. If the care provider information you give is incorrect or incomplete, your
credit will not be allowed unless you
A. Completely fill out Form 2441 or Schedule 2.
B. Show due diligence in trying to supply the correct information by keeping
the care provider's completed Form W-10.
C. Show proof that you did pay.
D. Call the IRS and give them the telephone number of the care provider.
95. There are many ways the taxpayer can show due diligence.
Which of the following is correct as far as showing due diligence?
A. Get and keep the care provider's completed Form W-10.
B. Report whatever information you have and then attach a statement explaining
that you requested the information from the care provider, but the provider did
not give you the information.
C. Attach a statement that will show you used due diligence in trying to furnish
the necessary information along with the information that you do have.
D. Any of the above
96. There is a dollar limit on the amount of your work related
expenses that you can use to figure the child and dependent care expenses
credit. This limit is set per qualifying person. The limit is
A. $3,000 for one qualifying person.
B. $6,000 for two or more qualifying people.
C. Both A and B are
correct. D. $3,000 for each
qualifying person.
97. You and your spouse (MFJ) paid $5,000 in child care, you
earned $19,000 for the entire year. Your spouse did not work and was not a
student or disabled. You have only one qualifying child. What is your child and
dependent care expenses credit for tax year 2009?
A. $0 federal credit.
B. $1,750 federal credit.
C. $1,050 federal credit. D. $2,100 federal credit.
98. I am single and want to file my return and have no tax liability. If I claim the child and dependent care expenses credit
for federal, would I get a refund?
A. Yes, tax liability can be zero, and you can still qualify because for
federal the
credit is refundable.
B. No, you cannot get a refund for any part of the credit that is more than
your regular tax because this tax credit is not refundable.
C. No, if you have tax, the child and dependent care credit would not cancel it and
thus there is no reason to claim it.
D. No, the federal tax system does not have a Child and Dependent Care Expenses Credit.
99. Juan and Maria Escobedo are married and keep up a home for
their two pre-school children. In tax year 2009, they claimed their children as
dependents. Juan earned $15,200 and Maria earned $5,100. They paid $4,900 in
work related child care expenses. What is their credit?
A. $0 for federal.
B. $1,750 for federal.
C. $1,568 for federal. D. $1,632 for federal.
100. In tax year 2009, if you are single with one qualifying child
and your gross income is $44,100, what would your federal child and dependent
credit be if you paid $4,000
in child care?
101. For single filers in tax year 2009
the AMT exemption amount has increased to
A. $46,700
B. $70,950
C. $35,475
D. $6,700
102. If you claim a regular
tax deduction for any state or local sales or excise tax on the purchase of a
new motor vehicle, that tax is
A. Not allowed as a deduction for the AMT.
B. Also allowed as a deduction for the AMT.
C. 90% of the tax is allowed as a deduction for the AMT.
D. Only amount above $100 are allowed as a deduction for the AMT.
103. In 2009, the rules
regarding the age of a child whose investment income may be taxed ate the
parent's tax rate have changed to the following:
A. The rules continue to apply to a child under age 18 at the end of the year.
B. The rules will apply in certain cases to a child who was age 19 at the end of
2009 and did not have earned income that was more than half of the child's
support.
C. The rules will apply in certain cases to a child who was a full-time student
over age 19 and under 24 at the end of 2009 and did not have earned income that
was more than half of the child's support.
D. Any of the above.
104. Beginning in 2009,
the following statement is not correct regarding the definition of a qualifying
child.
A. To be your qualifying child, a child must be younger than you unless the
child is permanently and totally disabled.
B. A child cannot be your qualifying child if he or she files a joint return,
unless the return was filed only as claim for refund.
C. If the parents of a child can claim the child as a qualifying child but no
parent so claims the child, no one can claim the child as a qualifying child
unless that person's AGI is higher than the highest AGI of any of the child's
parents who can claim the child.
D. Your child is a qualifying child for purposes of the child tax credit even if
you cannot claim an exemption for him or her.
105. For tax year 2009,
qualified individuals with small businesses may be eligible to maker smaller
estimated tax payments. If you qualify, your required annual payment for 2009 is
the smaller of 90% of the tax shown on your 2008 tax return or 90% of the tax
shown on your 2009 tax return. You are a qualified individual if
A. More than 50% of your gross income was from a business that had an average of
fewer than 500 employees in 2008.
B. Your adjusted gross income in 2008 was less than $500,000 ($250,000 if you
are filing married filing separately for 2009).
C. Both A and B above.
D. Less than 50% of your gross income was from a business that had an average of
fewer than $500 employee in 2008.
106. The following are
are itemized deductions you can take on Schedule A for 2009, except
A. State or local sales and excise taxes imposed on the purchase of a new motor
vehicle after February 16, 2009, and before 2010.
B. The convenience fee you are charged by the card processor to pay using your
credit or debit card.
C. Long-Term care premiums.
D. None of the above
107. The following is a
true statement regarding the economic recovery payment.
A. The $250 payments are being made to most people who receive social security
benefits, supplemental security income (SSI), railroad retirement benefits, or
veterans disability compensation or pension benefits.
B. The $250 payments are being made to most people who live in a U.S. state, the
District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American
Samoa, or the Northern Mariana Islands.
C.
Any economic
recovery payment you receive during 2009 is not taxable.
D. All of the Above.
108. You may be able to
take this credit if you have earned income from work. even if your federal
income tax withholding is reduced during 2009 because of the credit, you must
claim the credit on your return to benefit from it.
A. Making work pay credit.
B. Government retiree credit.
C. Economic recovery credit.
D. All of the above.
109. You can take this
credit if you receive a pension or annuity payment in 2009 for service performed
for the U.S. Government or any U.S. state or local government (or any
instrumentality of one or more of these) and the service was not covered by
social security.
A. Making work pay credit.
B. Government retiree credit.
C. Economic recovery credit.
D. All of the above.
110. The Making work pay
credit is 6.2% of your earned income but cannot be more than $400 for single
filers or $800 for married filing joint filers. This credit will be reduced if
A. You receive a $250 economic recovery payment during 2009.
B. Your modified AGI is more than $75,000 or $150 if married filing jointly.
C. You take the government retiree credit.
D. Any of the above.
111. For tax years 2009
and 2010, changes have been made to the Hope credit. All of the following
statements are true regarding the changes, except
A. The modified credit is now referred to as the American opportunity tax credit
(AOC).
B. The AOC can now be claimed for the first two years of post-secondary
education.
C. The term "qualified tuition and related expenses" has been expanded to
include expenditures for "course materials" which includes books, supplies, and
equipment needed for a course of study whether or not the materials are
purchased from the educational institution as a condition of enrollment or
attendance.
D. The maximum amount of the AOC increases to $2,500 per student.
112. The following change
is in effect beginning in tax year 2009 for the Health Coverage Tax Credit.
A. Increase in the amount of the health coverage tax credit (HCTC for coverage
months beginning after April 2009 and before 2011 the credit increases to 80%.
B. Effective as of February 17, 2009, qualified health insurance is expanded to
include coverage under an employee benefit plan funded by a voluntary employees'
beneficiary association.
C. For coverage months beginning after February 2009 and before 2011, training
and waiver requirements have changed for TAA recipients, making it easier for
them to be eligible for the HCTC.
D. All of the above.
113. A new law that went
into effect November 6, 2009 that extended the First-time Homebuyer Credit to
April 30, 2010. The maximum credit amount remains at $8,000 for a first-time
homebuyer. A first-time homeowner is
A. A buyer who has never owned a home.
B. A buyer who has not owned a primary residence during the three years up to
the date of purchase.
C. A buyer who owns a primary residence and has never purchased a secondary
residence.
D. A buyer must have owned and used the same home as a principal or primary
residence for at least five consecutive years.
114. The following is a
restriction on purchases that occur after November 6 that go into effect with
the new law for the first-time homebuyer credit.
A. Dependents are not eligible to claim the credit.
B. No credit is available if the purchase price of a home is more than $800,000.
C. A purchaser must be at least 18 years of age on the date of purchase.
D. All of the above
115. Gain from the sale
or exchange of the main home is no longer excludable from income if allocable to
periods of nonqualified use. Generally, nonqualified use means any period after
2008 where neither your nor your spouse (or former spouse) used the property as
a main home (with certain exceptions). A period of nonqualified use does not
include:
A. Any portion of the 5-year period ending on the date of the sale or exchange
that is after the last date you (or your spouse) use the property as a main
home.
B. Any period during which you or your spouse is not serving on qualified
official extended duty.
C. Any portion of the 15-year period ending on the date of the sale.
D. Any of the above.
116. Generally, a
personal casualty or theft loss must exceed ______ to be allowed in 2009. This
is in addition to the 10% of AGI limit that generally applies to the net loss.
A. $1,000
B. $850
C. $500
D. $100
117. For tax years
beginning after July 2, 2008 (the 2009 calendar year for most taxpayers), new
rules apply to allow the custodial parent to revoke a release of claim to
exemption that was previously released to the noncustodial parent on Form 8332,
or similar form. The revocation is effective no earlier than the tax year
following the year in which the custodial parent provides, or makes reasonable
efforts to provide, the noncustodial parent with written notice of the
revocation. Therefore, if the custodial parent provides notice of revocation to
the noncustodial parent in 2009, the earliest tax year the revocation can be
effective is the tax year beginning in
A. 2009
B. 2010
C. 2011
D. 2012
118. Beginning January 1,
2009, you may be reimbursed for reasonable expenses of qualified bicycle
commuting. Reasonable expenses include the purchase of a bicycle of and bicycle
improvements, repair, and storage. The exclusion for a calendar year is ______
multiplied by the number of qualified bicycle commuting months during that year.
A. $230.
B. $120.
C. $60.
D. $20.
119. The non-business
energy property credit, which expired after 2007, has been reinstated. You may
be able to claim a non-business energy property credit of ______ of the cost of
certain energy-efficient property or improvements you placed in service in 2009.
A. 30%
B. 20%
C. 10%
D. 50%
120. Beginning in 2009,
there is _______ on the credit amount for qualified solar electric property
costs, qualified solar water heating property costs, qualified small wind energy
property costs, and qualified geothermal heat pump property costs.
A. A 30% limitation.
B. A 20% limitation.
C. No limitation.
D. 10% limitation.
121. The Affordable Care
Act was enacted on March 23, 2010. However, it does not contain tax provisions
that take effect this year.
True
False
122. This new credit
helps small businesses and small tax-exempt organizations afford the cost of
covering their employees and is specifically targeted for those with low and
moderate income workers.
A. Excise Tax on Indoor Tanning Services.
B. Small Business Health Care Tax Credit.
C. Affordable Care Act.
D. Non-Business Energy Property Credit.
123. Health coverage for
an employee's children is now generally tax-free to the employee. This expanded
health care tax benefit applies to various work place and retiree health plans.
This coverage is available for an employee's
A. Children under 14 years of age.
B. Children under 17 years of age.
C. Children under 24 years of age.
D. Children under 27 years of age.
124. If you retire from
the armed services based on years of service and are later given a retroactive
service-connected disability rating by the VA, your retirement pay for the
retroactive period is
A. Excluded from income up to the amount of VA disability benefits you would
have been entitled to receive.
B. Excluded from income up to the amount of VA disability benefits you actually
received.
C. Include in income up to the amount of VA disability benefits your received.
D. Totally excluded from your income.
125. If you do not file
your return by the due date (including extensions) you may have to pay a
failure-to-file penalty. The minimum penalty is
A. $135.
B. 100% of the unpaid tax.
C. The smaller of A or B above.
D. The greater of A or B above.
126. The new deduction
for sales and excise taxes imposed on purchase of new motor vehicle can be used
to increase the amount of your standard deduction.
True
False
127. You must use
Schedule L (Form 1040A or 1040) to figure your standard deduction if
A. You paid state or local real estate taxes in 2009.
B. You have a net disaster loss on Form 4684, line 18.
C. You paid state or local sales or excise taxes (or certain other taxes or fees
in a state without a sales tax) on the purchase of any new motor vehicle (s)
after February 16, 2009, and before January 1, 2010.
D. Any of the above.
128. For 2009, the
standard mileage rate for the cost of operating your car for medical reasons or
as part of a deductible move is
A. 14 cents per mile.
B. 24 cents per mile.
C. 55 cents per mile.
D. None of the above.
129. If you pay a
household employee cash wages of less than _____ in 2009, you do not have to
report and pay social security and Medicare taxes on that employee's 2009 wages.
A. $1,700
B. $1,600
C. $1,000
D. $7,000
130. The Affordable Care
Act provides a one-time $2500 rebate in 2010 to assist Medicare Part D
recipients who have reached their Medicare drug plan's coverage gap.
131. Accountants in industry
are often key to the planning and control processes of their organizations.
True
False
132. A professional whom is in
a good position to discover organizational wrongdoing because of their heavy
involvement in their companies' planning and control processes.
A.
An accountant. B.
An attorney. C.
A painter. D.
A doctor.
133. Some people, both inside
and outside the profession, would view the accountant's decision to blow the
whistle as
A.
Morally justifiable. B.
Professionally justifiable. C.
Harmful to the employing organization and would advise against doing so. D.
Any of the above.
134. This causes the greater
amount of turmoil, creating an atmosphere of unpleasantness that may lead to
retaliation against the whistleblower.
A.
Wrongdoing reporting. B.
Inside Snitching. C.
Internal Whistle-blowing. D.
External whistle-blowing.
135. As a member of any of the
professional organizations, the accountant in industry is expected to comply
with their
A.
Codes of ethical conduct. B.
Tax Prepare license guidelines. C.
Law enforcement agencies. D.
Board of Accountancy.
136. MAs have an obligation to
the organizations they serve, their profession, the public, and themselves. The
IMA, in its Standards of Ethical Conduct for Management Accountants, state that:
"Management accountants have a responsibility to refrain from disclosing
confidential information... to communicate unfavorable information..., and to
disclose all relevant information..."
True
False
137. The AICPA's Code of
Professional Conduct states that members should act with integrity, guided by
the precept that when members fulfill their responsibility to best serve
A.
The public interest. B.
Their clients' interests. C.
Employers' interests. D.
All of the above.
138. According to the "What is
Ethics" article, being ethical is clearly
A.
A matter of following one's feelings. B.
Not a matter of following one's feelings. C.
Has to do with religious beliefs. D.
Doing what the law requires.
139. According to the "What is
Ethics" article, ethics is the same as religion.
True
False
140. Our own pre-Civil war
slavery laws and the apartheid laws of present-day South Africa are
A.
Examples of feeling of right and wrong. B.
Examples of religious beliefs. C.
Grotesquely obvious examples of laws that deviate from what is ethical. D.
All of the above.
141.
Being ethical is not the same as doing "whatever society accepts". In any
society, most people accept standards that are, in fact, ethical. An entire
society can become ethically corrupt. According to the article, a good example
of a morally corrupt society is
A.
Drug problem in the American continent. B.
Nazi Germany. C.
The war in the Middle East. D.
All of the above.
142.
According to the article, the following is what ethic is.
A.
Well based standards of right and wrong that prescribe what humans ought to do,
usually in terms of rights, obligations, benefits to society, fairness or
specific virtues. B.
Those standards that impose the reasonable obligations to refrain from rape,
stealing, murder, assault, slander, and fraud. C. The
continuous effort of studying to ensure that we live up to standards that are
reasonable and solidly-based. D.
All of the above.
143.
Ethical standards include standards relating to rights, such as the right to
life, the right to freedom from injury, and the right to
privacy.
True
False
144.
The law often incorporates ethical standards to which most citizens subscribe.
Therefore, being ethical is the same as following the law.
True
False
145.
Ethical norms tend to be broader and more informal than laws. Although most
societies use laws to enforce widely accepted moral standards and ethical and
legal rules use similar concepts, it is important to remember
A.
That ethics and law are not the same. B.
That if an action is legal it is ethical. C.
That ethics and law are the same. D.
None of the above.
146.
Strive for honesty in all scientific communications. Honestly, report data,
results, methods and procedures, and publication status. Do not fabricate,
falsify, or misrepresent date. Do not deceive colleagues, granting agencies, or
the public. This is an example of
A.
Adopted specific code by different professional associations, government
agencies, and universities have. B.
What ethics is. C.
What ethics is not. D.
None of the above.
147.
Although codes, policies, and principles are very important and useful, like any
set of rules, they do not cover every situation that arises in research, they
often conflict, and they require considerable interpretation.
True
False
148.
Another way of defining "Ethics" focuses on the disciplines that study standards
of conduct, such as philosophy, theology, law, psychology or sociology.
True
False
149.
This is the most common way of defining "Ethics": Ethics are norms for conduct
that distinguish between or acceptable and unacceptable behavior. When most
people think of ethics (or morals), they think of
A.
Rules for distinguishing between right and wrong, such as the Golden Rule ("Do
onto others as you would have them do onto you"). B.
A code of professional conduct like the Hippocratic Oath ("First of all, do no
harm"). C.
A religious creed like the Ten Commandments ("Thou shalt not kill...") or wise
aphorisms like the saying of Confucius. D.
Any of the above.
150. One plausible explanation
for so many ethical disputes and issues in our society is that all people
recognize some common ethical norms but different individuals interpret, apply,
and balance these norms in different ways in light of their own values and life
experiences.
You
will need Adobe Reader to view and print these forms. If you do not
already have Adobe Reader installed on your computer, you may
download the software for free.