5 Written Questions
5 Matching Questions
- FICA provides for
- Accrual basis of accounting
- All wages are subject to the Medicare tax at a rate of ___% each for both employees and employers.
- Fiscal year
- In balance
- a 1.45%
- b The state in which the total ending balances of patient ledgers equals the tatal of accounts receivable.
- c Method of accounting in which income is recorded when earned and expenses are recorded when incurred.
- d An accounting period of 12 months during which a company determines earnings and profit; the fiscal year does not neccessarily begin in January; the business determines the beginnging of its fiscal year.
- e a federal system of old age, survivors, disability, and hospital insurance. Rate is 6.2 % for employees and employers.
5 Multiple Choice Questions
- a single-entry or double-entry system
- monthly and annually
- The entire property of a person, association, corporation, or estate applicable or subject to the payment of debts.
- A method of determining that the journal and the ledger are in balance.
- The Transmittal of Income and Tax Statement. Employers must file form annualy to transmit wage and income tax withheld statements (Form W-2) to the Social Security Administration.
5 True/False Questions
The amount of taxes to withheld is based on → Total earnings of the employee
Number of withholding allowances claimed
Marital status of the employee
Length of the pay period involved
Common summary reports include → Statement of income and expense, cash flow statement, trial balance, accounts receivable balance and aging analysis, balance sheet.
All records of employment taxes should be available for review by the → 4 years
Trial balance → The state in which the total ending balances of patient ledgers equals the tatal of accounts receivable.
Balance sheet → The state in which the total ending balances of patient ledgers equals the tatal of accounts receivable.