Annual Federal Tax Refresher (AFTR)

Question 1

A sole proprietor reports business income and expenses on which schedule attached to Form 1040?

Schedule A Schedule B Schedule C Schedule E

Correct Answer:

Schedule C

Question 2

Under the cash method of accounting, a business recognizes income when:

An invoice is issued to the customer Payment is constructively or actually received A contract is signed Goods are shipped

Correct Answer:

Payment is constructively or actually received

Question 3

Section 179 expensing allows a business to:

Deduct the full cost of qualifying business property in the year it is placed in service Amortize startup costs over 15 years Exclude gain on the sale of business real estate Defer depreciation recapture to a later year

Correct Answer:

Deduct the full cost of qualifying business property in the year it is placed in service

Question 4

What is the primary purpose of Form 1099-NEC?

To report nonemployee compensation paid of $600 or more to independent contractors To report interest income over $10 To report distributions from retirement accounts To report proceeds from broker transactions

Correct Answer:

To report nonemployee compensation paid of $600 or more to independent contractors

Question 5

Bonus depreciation under current law generally allows businesses to deduct what percentage of the cost of qualifying new or used property in the first year?

50% 75% 100% 200%

Correct Answer:

100%

Question 1

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About this Exam

Prepare with the Annual Federal Tax Refresher (AFTR) practice quiz. This question bank includes 100 questions covering applies, regulatory, compliance, risk, and planning. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Annual Federal Tax Refresher (AFTR)

This practice set contains 100 questions from the matching question bank and focuses on applies, regulatory, compliance, risk, and planning. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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Annual Federal Tax Refresher (AFTR)

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