How will an increase in your income affect your tax liability? Question 1 options: Your tax liability will increase. Your tax liability will remain the same Your tax liability will be annulled. Your tax liability will decrease. Question 2 (1 point) Choose the MOST CORRECT statement as it relates to home office expenses. Question 2 options: Home office expenses are deductible when the taxpayer works from home on a regular basis. The IRS/ CRA does not have any requirements except that the taxpayer own a business. Home office expenses are deductible only if the taxpayer works from home 100 percent of the time. Home office expenses are deductible when the taxpayer works from home every once in a while. Question 3 (1 point) Comparative income statements show an increase in the sale from one year to the next. This would _____ the net income. Question 3 options: likely increase always negate rarely change never increase Question 4 (1 point) Saved Which of the following is an example of an indirect tax? Question 4 options: Import duties Sales tax charged separately Real estate taxes All of these choices are correct. Question 5 (1 point) Tom works for a large company and has recently had to purchase some administrative items for his small business. He has also had to pay a tax when he bought his new apartment and he had to pay that same form of tax when he purchased a car. Which of the following did he have to pay in each purchase? Question 5 options: Capital gains tax Property tax Medicare tax Social Security tax Question 6 (1 point) When a portion of your paycheck goes to the state and federal government, this is a tax on your _____. Question 6 options: savings account items that you purchase property income Question 7 (1 point) Saved The following change in wealth is taxable: Question 7 options: Winning the lottery Winning at the Montreal Casino Receiving an inheritance Selling your cottage Question 8 (1 point) Saved Child-care expenses are: Question 8 options: Offset by child-support systems. A tax credit claimed by the parent who earns the most. Deductible from taxable income. Applicable only to children under 18. Question 9 (1 point) Saved If your employer deducts income tax from your pay, you won't owe any tax when you complete your tax return. Question 9 options: True False Question 10 (1 point) The goods and services tax/harmonized sales tax is applied to most goods and services sold in Canada. Question 10 options: True False Question 11 (1 point) If tax was not deducted from your pay, it means the earnings are not taxable. Question 11 options: True False Question 12 (1 point) Aaron has worked all of his life and is ready to retire. Why is Aaron currently guaranteed some form of retirement benefit? Question 12 options: Because social security tax has been taken as part of payroll taxes. Because he is mandated to contribute to the company's 401(k) plan. Because sales taxes contribute to retirement programs. Because he is an exempt employee so he gets retirement benefits. Question 13 (1 point) Which of the following is a correct analysis of an income statement? Question 13 options: The owner can most likely pay himself $50,000 if his operating profits are $60,000. The owner can most likely pay himself $50,000 if the business creates $60,000 in revenue. The owner can most likely pay himself $50,000 if the business creates $50,000 in revenue. The owner can most likely pay himself $50,000 if the business has $60,000 in available earnings. Question 14 (1 point) Which statement about the statement of comprehensive income is FALSE? Question 14 options: The total of other comprehensive income reported in the statement of comprehensive income is added to accumulated other comprehensive income in the statement of changes in equity. The statement of comprehensive income is always included in a set of published financial statements. In the statement of comprehensive income, the gains and losses that are not reported in earnings are presented. The statement of comprehensive income can either be included at the bottom of the income statement or as a separate statement. Question 15 (1 point) Saved If you buy a car, what type of tax are you required to pay each year for as long as you own the car? Question 15 options: automobile ownership tax car fuel tax school tax property tax