S corporations:
A) pay the same corporate tax rates as C corporations
B) are not subject to double taxation
C) must have 20 or fewer stockholders
D) do not provide limited liability for their owners
Which of the following has the advantage of limited liability?
A) shareholder B) sole proprietor C) general partner D) none of the above
Which form of business organization is the most frequently encountered in the hospitality industry?
A) limited partnership B) partnership
C) sole proprietorship D) corporation
Which of the following is an example of tax avoidance?
A) underreporting income B) concealing a current or future tax liability
C) claiming excessive deductions D) none of the above
The property tax rate is stated in mills, which represent the number of tax dollars per 1,000 of assessed value.
Indicate whether the statement is true or false
Property tax is generally a function of the assessed value and the tax rate.
Indicate whether the statement is true or false
Current tax laws allow a loss to be carried back 15 years.
Indicate whether the statement is true or false
For tax purposes, first-year losses must be capitalized as a deferred charge and amortized over several years.
Indicate whether the statement is true or false
Accounting income and taxable income often differ because of the way depreciation is treated.
Indicate whether the statement is true or false
An accrual-basis taxpayer has more flexibility in reporting income than a cash-basis taxpayer.
Indicate whether the statement is true or false
Quick Reply
