ACC 317 WK 11 Final Exam - All Possible QuestionsTo Purchase Click Link Below:http://strtutorials.com/ACC-317-WK-11-Final-Exam-All-Possible-Questions-ACC3172.htmACC 317 WK 11 Final Exam - All Possible Questions1.A church is one of the types of exempt organizations.TrueFalse2.While the major objective of the Federal income tax law is to raise revenue, social considerations and economic objectives also affect the tax law.TrueFalse3.All organizations that are exempt from Federal income tax are exempt under 501(c)(3).TrueFalse4.An exempt entity in no circumstance is subject to Federal income tax.TrueFalse5.An entity satisfies the not-for-profit requirement for exempt status if its total expenses for the year exceed its gross income.TrueFalse6.If an organization qualifies for exempt status for Federal income tax purposes, it is exempt from all Federal income taxes.TrueFalse7.Engaging in a prohibited transaction can result in an exempt organization being subject to Federal income tax, but cannot cause it to lose its exempt status unless the exempt organization repeats the prohibited transaction.TrueFalse8.The League of Women Voters is a 501(c)(3) organization.TrueFalse9.George is running for mayor of Culpepper. The members of Third Church adamantly oppose his candidacy. They would like to run a political advertisement in the local newspaper opposing his candidacy. The newspaper ad would have no effect on Third Churchs exempt status because the ad opposes George; it does not support his opponent.TrueFalse10.An exempt organization that is eligible to elect under 501(h) to engage in lobbying activities on a limited basis incurs no tax liability from lobbying, if the lobbying expenditures for the tax year do not exceed the lobbying expenditures ceiling.TrueFalse11.While certain 501(c)(3) organizations can elect to be permitted to lobby on a limited basis, churches are not eligible to make a 501(h) election.TrueFalse12.An intermediate sanction imposed by the IRS on an exempt organization is a greater sanction than revocation of exempt status.TrueFalse13.If an exempt organization owns a feeder organization, the exempt organization is taxed on the profits of the feeder organization under the unrelated business income tax (UBIT) rules.TrueFalse14.A feeder organization is exempt from Federal income taxation because it carries on a trade or business for the benefit of an exempt organization and remits its profits to the exempt entity.TrueFalse15.Theater, Inc., an exempt organization, owns a printing company, Printers, Inc., which remits 85% of its profits (i.e., taxable income of $100,000) to Theater, Inc. Since Printers remits at least 85% of its profits to Theater, neither Theater, Inc., nor Printers, Inc., must pay income tax on this $85,000 ($100,000 85%).TrueFalse16.An educational organization such as the College of William and Mary that is exempt under 501(c)(3) cannot be classified as a private foundation if its only sources of revenue are from tuition and alumni contributions.TrueFalse17.The tax consequences to a donor of making a charitable contribution to an exempt organization classified as a private foundation may be less favorable than the tax consequences to a donor of making a charitable contribution to an exempt organization that is not classified as a private foundation.TrueFalse18.Exempt organizations which are appropriately classified as private foundations include churches, educational institutions, and charitable organizations receiving a major portion of their support from the general public or the U.S., a state, or a political subdivision thereof.TrueFalse19.To satisfy the broadly supported provision to avoid classification as a private foundation, the exempt organization must satisfy both an external support test and an internal support test. Under the internal support test, more than one-third of the exempt organizations support for the taxable year must come from gross investment income and unrelated business taxable income.TrueFalse20.The excise taxes such as the tax on self-dealing and the tax on excess business holdings are imposed on exempt organizations classified as private foundations and are not imposed on exempt organizations classified as public charities.TrueFalse21.The excise tax imposed on a private foundations excess business holdings is in effect an audit fee to defray IRS expenses.TrueFalse22.The purpose of the excise tax imposed on a private foundation for failure to distribute sufficient levels of income is to motivate the foundation to distribute more of its income for application to exempt purposes and thus be classified as a feeder organization.TrueFalse23.The excise tax imposed on a private foundations investment income can be imposed as an initial (first-level) tax but cannot be imposed as an additional (second-level) tax.TrueFalse24.The excise tax imposed on private foundations for excess business holdings is imposed on investments that enable the private foundation to control publicly-held rather than privately-held businesses.TrueFalse25.The excise tax that is imposed on private foundations for making jeopardizing investments is imposed because the foundation has made speculative investments that put the foundations income at risk.TrueFalse26.The general objective of the tax on unrelated business income is to tax such income as if the entity were a taxable corporation.TrueFalse27.Federal agencies exempt from Federal income tax under 501(c)(1) are not subject to the unrelated business income tax (UBIT).TrueFalse28.A trade or business that is operated by an exempt organization which otherwise would be subject to the tax on unrelated business income is exempt from tax, if the profits generated by the trade or business are used by the exempt organization for exempt purposes.TrueFalse29.An activity is not an unrelated trade or business for purposes of the unrelated business income tax (UBIT) unless it is profitable.TrueFalse30.A profit-related activity of an exempt organization avoids the unrelated business income tax if greater than 50% of the merchandise sold had been received as a contribution.TrueFalse31.If an exempt organization conducts a trade or business that is regularly carried on by the organization, it is subject to the unrelated business income tax (UBIT).TrueFalse32.An exempt organization that otherwise would be classified as an unrelated trade or businesses will not be subject to the unrelated business income tax if the individuals performing substantially all the work of the trade or business do so without compensation.TrueFalse33.A corporate payment to an exempt organization that qualifies as a qualified sponsorship payment is not subject to the unrelated business income tax (UBIT).TrueFalse34.The income from a bingo game or a casino game conducted by an exempt organization may be unrelated business income.TrueFalse35.The key factors in determining whether an exempt entitys income from a bingo game is unrelated trade or business income are whether substantially all the work is performed by volunteers and all of the prizes to be awarded are received as donations.TrueFalse36.An exempt organization is located in the state of Nevada. Gambling in Nevada is legal. Therefore, bingo games are conducted by both taxable and tax-exempt organizations. If the net earnings from the bingo games are less than $25,000, the exempt organization is not subject to the unrelated business income tax (UBIT).TrueFalseMore Questions are Included...