Acc 317 Week 11 Final Exam - All Possible Questions

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ACC 317 WEEK 11 Final Exam - All Possible Questions
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ACC 317 WK 11 Final Exam - All Possible Questions

1. A church is one of the types of exempt organizations.
True False

2. While the major objective of the Federal income tax law is to raise revenue, social considerations and economic objectives also affect the tax law.
True False

3. All organizations that are exempt from Federal income tax are exempt under § 501(c)(3).
True False

4. An exempt entity in no circumstance is subject to Federal income tax.
True False

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ACC 317 WEEK 11 Final Exam - All Possible Questions

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5. An entity satisfies the “not-for-profit” requirement for exempt status if its total expenses for the year exceed its gross income.
True False

6. If an organization qualifies for exempt status for Federal income tax purposes, it is exempt from all Federal income taxes.
True False

7. 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.
True False

8. The League of Women Voters is a § 501(c)(3) organization.
True False

9. 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 Church’s exempt status because the ad opposes George; it does not support his opponent.
True False

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ACC 317 WEEK 11 Final Exam - All Possible Questions

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True False

11. 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.
True False

12. An intermediate sanction imposed by the IRS on an exempt organization is a greater sanction than revocation of exempt status.
True False

13. 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.
True False

14. 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.
True False