Value Added Tax and Instructor Explanation

Topics: Value added tax, Tax, Investment Pages: 5 (1215 words) Published: July 23, 2013
1.Question :(TCO D) A residence in Brevard County has an assessed value of $150,000. Its owner qualifies for an old age exemption of $10,000 and a homestead exemption of $20,000. The property tax rate is $5 per $100 AV. What will be the property tax bill on this property?

Student Answer: $7,500




Instructor Explanation:@ Chapter 10. This owner has an adjusted (for exemptions) AV of $150,000-$30,000 = $120,000. If the tax rate is $5 per $100 of AV, then the tax bill will amount to ($5) ($1200) = $6,000.

Points Received:4 of 4

2.Question :(TCO E) Federal government taxes consumption mainly through:

Student Answer: general retail sales taxes.

value added taxes (VAT).

selective excise taxes.

payroll taxes.

Instructor Explanation:Chapter 9.

Points Received:0 of 4

3.Question :(TCO E) With reference to tax systems, the principle ofcollectability asserts that:

Student Answer: a tax must be collected at a reasonable cost to society.

a tax must be collected by the government agency which imposed the tax. a tax must be collected within 90 days of its imposition.

a tax must be paid by cash, check, money order, or electronic transfer. Instructor Explanation:Chapter 7; Lecture.

Points Received:4 of 4

4.Question :(TCO E) Which of the following pieces of evidence would by itself allow a judgment about the regressivity or progressivity of a tax?

Student Answer: High-income families have higher tax bills than do low-income families. The richest 5% of the population pay 30% of the total tax collected. Per-capita tax payments by rich families are higher than per-capita tax payments by poor families. Low-income families pay out a higher proportion of their income in the form of tax than do high-income families.

Instructor Explanation:Chapter 7; Lecture.

Points Received:0 of 4

5.Question :(TCO G) Program Budgets:

Student Answer: link specific outcome measures to requests for funds.

do not focus on measurable activities.

classify the budget by goals and objectives such as "protection of persons" or "improved transportation." classify the budget in terms of objects of expenditure.

Instructor Explanation:Chapter 5; Lecture.

Points Received:4 of 4

6.Question :(TCO H) Capital projects are a critical part of governmental activities at the federal, state and local level. The steps in the capital budgeting process are significant part of selecting projects from many competing potential projects in a world of limited resources. (A) Describe and explain the steps in the capital budgeting process. Provide two examples of each. (15 points) (B) Under what circumstances might a governmental unit select a project that is not high on the preference list? (15 points)

Student Answer: Capital budgeting is also vital to a business because it creates a structured step by step process that enables a company to: Develop and formulate long-term strategic goals – the ability to set long-term goals is essential to the growth and prosperity of any business. The ability to appraise/value investment projects via capital budgeting creates a framework for businesses to plan out future long-term direction. Seek out new investment projects – knowing how to evaluate investment projects gives a business the model to seek and evaluate new projects, an important function for all businesses as they seek to compete and profit in their industry. Estimate and forecast future cash flows – future cash flows are what create value for businesses overtime. Capital budgeting enables executives to take a potential project and estimate its future cash flows, which then helps determine if such a project...
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