CHAPTER 7 Questions and Answers

1
CHAPTER 7 Questions and Answers
Students - Here are 14 questions to test what
you have learned! Press the buttons on the
left to check your answers. If you answer
correctly, I will tell you Affirmative. I
f you answer incorrectly, I will tell you
Negative. IT IS TIME TOPROCEED TO THE FIRST
QUESTION
2
Question 1 - When you terminate collection
action on a debt you are

• stopping all collection action on the debt.
• ceasing active collection on the debt.
• C. writing-off the debt.

3
AFFIRMATIVE
Click anywhere to go to the next question.
4
Question 2 - Temporarily ceasing active
collection on a debt is called

• A. being lazy.
• B. currently-not-collectible.
• C. suspension.

5
AFFIRMATIVE
Click anywhere to go to the next question.
6
Question 3 - All of the following are legitimate
reasons for terminating collection action except

• A. The debtor is discharged in bankruptcy.
• B. You cannot locate the debtor.
• C. Your boss tells you to finish action on the
  debt before you go on vacation.
• D. The debtor does not have the ability to pay
  any portion of the debt.

7
AFFIRMATIVE
Click anywhere to go to the next question.
8
Question 4 - The term write-off refers to

• A. A decision by Santa Clause that a child
  should not receive a present for the upcoming
  Christmas.
• B. A determination that a debtor does not have
  to pay a debt that is owed.
• C. A determination that a debt has no value
  for accounting purposes and an agencys action
  to reflect this determination in the agencys
  accounting reports.

9
AFFIRMATIVE
Click anywhere to go to the next question.
10
Question 5 - You may only write-off a debt after
the debt has been terminated

• A. True
• B. False
• C. True and False

11
AFFIRMATIVE
Click anywhere to go to the next question.
12
Question 6 - According to OMB Circular No.
A-129, how many classifications of write-off are
there?

• A. Two
• B. Three
• C. This is a trick question - there is no such
  thing as OMB.

13
AFFIRMATIVE
Click anywhere to go to the next question.
14
Question 7 - The two classifications of write-off
are called

• A. Termination and currently-not-collectible.
• B. Jack and Jill.
• C. Currently-not-collectible and close-out.

15
AFFIRMATIVE
Click anywhere to go to the next question.
16
Question 8 - A debt is classified as
close-out...

• A. Before it is terminated.
• B. When it is determined that the agency does not
  intend to take any further action to collect the
  debt.
• C. When it is determined that a debt is
  ineligible for the Treasury Offset Program.

17
AFFIRMATIVE
Click anywhere to go to the next question.
18
Question 9 - A 1099-C is...

• A. A form filed with the Internal Revenue
  Service used to report potential income of a
  debtor whose debt has been closed-out.
• B. A Federal Claims Collection Standards section
  dealing with termination of indebtedness.
• C. A new jumbo aircraft created by Boeing that
  can hold up to 1099 passengers.

19
AFFIRMATIVE
Click anywhere to go to the next question.
20
Question 10 - The dollar threshold for mandatory
1099-C reporting is

• A. 1.37
• B. 500
• C. 600

21
AFFIRMATIVE
Click anywhere to go to the next question.
22
Question 11 - What is an identifiable event?

• A. A lineup at a police station where a witness
  to a crime identifies a suspect.
• B. An event that triggers the requirement to
  report a discharge of indebtedness to IRS as
  potential income.
• C. A verifiable UFO siting.

23
AFFIRMATIVE
Click anywhere to go to the next question.
24
Question 12 - How many identifiable events are
there under IRS regulations?

• A. 6
• B. 8
• C. Its not the quantity that matters, but
  the quality.

25
AFFIRMATIVE
Click anywhere to go to the next question.
26
Question 13 - Which answer has each of the terms
on the left matched to the appropriate source
document on the right.

• Active collection --- Federal Claims Collection
  Standards
• Discharge of Indebtedness --- Internal Revenue
  Code
• Currently-not-collectible --- OMB Circular No.
  A-129
• B. Active collection --- OMB Circular
  No. A-129
• Discharge of Indebtedness --- Internal Revenue
  Code
• Currently-not-collectible --- Federal Claims
  Collection Standards
• C. Active collection --- The Bone
  Collector
• Discharge of Indebtedness --- A River Runs
  Through It
• Currently-not-collectible --- The Merchant of
  Venice

27
AFFIRMATIVE
Click anywhere to go to the next question.
28
Question 14 - If a debtor files for Chapter 11
bankruptcy protection, the agency should

• A. Close-out the debt and issue a 1099-C.
• B. Terminate collection action on the debt.

C. Write-off the debt. D. Suspend collection
action until the bankruptcy case is dismissed.
29
AFFIRMATIVE
Click anywhere to continue
30
YOU HAVE FINISHED MY TUTORIAL. YOU ARE A GOOD
STUDENT AND DID WELL. HASTA LA VISTA, BABY!
31
NEGATIVE!
HIT BACK ARROW AND TRY AGAIN