#1
Which of the following is NOT a principle of taxation?
Equity
Certainty
Convenience
Efficiency
#2
Which tax is levied on the transfer of property upon the death of the owner?
Income tax
Estate tax
Sales tax
Property tax
#3
What is the purpose of a cost-benefit analysis in financial decision-making?
To determine the company's profitability
To evaluate the potential costs and benefits of a decision
To calculate the company's revenue
To assess the company's financial stability
#4
Which tax is imposed on the transfer of real property, such as land or buildings?
Property tax
Estate tax
Sales tax
Excise tax
#5
What is the primary objective of a budget in financial decision-making?
To minimize expenses
To maximize profits
To allocate resources effectively
To maintain liquidity
#6
Which tax is levied on the income earned by individuals and businesses?
Sales tax
Property tax
Income tax
Excise tax
#7
What is the primary purpose of financial statements in decision-making?
To provide information about the company's financial performance
To determine tax liabilities
To assess employee performance
To track inventory levels
#8
What is the primary objective of tax planning?
To maximize tax evasion
To minimize tax avoidance
To minimize tax liability within the boundaries of the law
To minimize tax compliance
#9
Which tax system imposes a higher tax rate as income increases?
Flat tax
Progressive tax
Regressive tax
Proportional tax
#10
What does the term 'tax incidence' refer to?
The distribution of tax burden between buyers and sellers
The process of tax collection by the government
The total amount of tax revenue collected by the government
The assessment of taxable income by taxpayers
#11
Which financial ratio measures a company's ability to meet short-term obligations with its most liquid assets?
Debt-to-Equity ratio
Current ratio
Return on Investment
Profit Margin
#12
What is the tax deduction available to taxpayers for each eligible dependent?
Earned Income Tax Credit
Child Tax Credit
Standard Deduction
Itemized Deduction
#13
What does 'tax avoidance' refer to?
Minimizing tax liability within the boundaries of the law
Illegally evading taxes
Voluntarily paying more taxes than required
Avoiding tax filing
#14
Which financial metric measures the efficiency of a company's use of its assets to generate revenue?
Return on Investment
Asset Turnover Ratio
Debt-to-Equity Ratio
Profit Margin
#15
What does the Laffer curve illustrate in taxation?
The relationship between tax revenue and tax rates
The relationship between tax evasion and tax rates
The relationship between tax avoidance and tax rates
The relationship between tax compliance and tax rates
#16
Which financial decision-making principle suggests that the costs and benefits of a decision should be evaluated based on future outcomes?
Marginal analysis
Present value
Net present value
Opportunity cost
#17
What is the key advantage of a regressive tax system?
It promotes income equality
It imposes lower tax rates on low-income earners
It imposes higher tax rates on high-income earners
It ensures tax compliance