Maria is 21 years of age and a full-time student living by herself

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1. In terms of dollars, wage earning taxpayers will normally pay the majority of their tax liability: (Points : 1)
When they file their tax return
Through withholding from their wages
In the following tax year
In advance in January

2. Maria is 21 years of age and a full-time student living by herself. She had wages of $19,000 for 2010. Can Maria claim the exemption for herself on her tax return? (Points : 1)
Maria's parents can claim the exemption
Both Maria and her parents can claim the exemption
Yes, Maria can claim the exemption
No one can claim the exemption for Maria

3. When filing their tax returns, almost all individuals use: (Points : 1)
The accrual method.
The cash receipts and disbursements method.
The recognition method.
The accounting method

4. Which of the following statements is true with respect to marginal and average tax rates? (Points : 1)
Marginal rates are always larger than average rates
Marginal rates are always smaller than average rates
Average rates can only be calculated for taxpayers with income over $100,000
Average rates are never more than marginal rates

5. Income may be realized in the form of: (Points : 1)
Property.
Cash.
Services.
All of the above.

6. To be a qualifying child, the taxpayer must meet three general tests and five specific tests. What are the three general tests? (Points : 1)
Relationship test, residency test and gross income test
Dependent taxpayer test, joint return test and citizen or resident test
Dependent taxpayer test, relationship test and citizen or resident test
Support test, age test and relationship test

7. If an attorney performs some estate tax work for a client and the client agrees to pay $1,000 to him and $2,000 to a local financial institution for a debt the attorney owes, the attorney has income of: (Points : 1)
$3,000.
$2,000.
$1,000.
None of the above

8. If Tom, an accountant, agrees to provide accounting services to Carl, a friend, in exchange for Carl fixing Tom's office floor, then: (Points : 1)
Tom must report income on his tax return.
Carl must report income on his tax return.
Neither Tom nor Carl must report income on their tax returns.
Both of them must report income on their tax returns.

9. For tax purposes, marital status is determined as of the __________ day of the year. (Points : 1)
First
Last
Third
None of the above

10. To be a qualifying child, the taxpayer must meet three general tests and five specific tests. Which one is not part of the five specific tests? (Points : 1)
Relationship test
Gross income test
Residency test
Special test for qualifying child of more than one taxpayer