Question 1

Which of the following is considered a state tax?

Accepted Answer

The answer of Which of the following is considered a...

Question 2

Which of the following is an example of a primary expense?

Accepted Answer

Primary expenses are expenses that directly relate to the operation of a business. Telephone service is necessary for communication and is directly related to operating the business. Overtime wages, FICA, and charge accounts are not considered primary expenses.

Question 3

Calculate the following problems concerning Social Security tax. Round answers to the nearest cent. The catering manager of the Gourmet Catering Company works on a  % commission of total sales for each week. During the first week in June total sales were $19,800. How much Social Security tax did she pay if the rate is 7.30%? $_______________

Accepted Answer

The answer of Calculate the following problems concerning Social Security...

Question 4

_____ are the amount of money you earn before any deductions (the amount taken away) are made.

Accepted Answer

Gross wages are defined as the total amount of money you earn before any deductions or taxes are taken out. Therefore, option B is the correct answer. Option A (Net wages) refers to the amount of money you earn after deductions are made, while options C and D (Social Security taxes and Employee's withholding taxes) are specific types of deductions that are taken out of your gross wages.

Question 5

The _____ is a summary or report of the business operation for a given period of time.

Accepted Answer

The answer of The _____ is a summary or report...

Question 6

The manager of the food concession at the local swimming club receives a small weekly salary of $130, plus a commission of 5.5% on all food sales for the week. Last week, the food sales amounted to $4,877. What was her gross wage for the week? $_______________

Accepted Answer

The answer of The manager of the food concession at...

Question 7

There are two major _____ that must be prepared and are essential to the operation of a business: the profit and loss (income) statement, sometimes referred to as the P&L sheet, and the balance sheet.

Accepted Answer

Financial statements are essential to the operation of a business and the two main types are the profit and loss statement and the balance sheet. Tax forms and charge accounts may be important for specific aspects of the business, but they are not as critical to the overall operation as financial statements. Budgets are important for planning and forecasting, but they are not the same as financial statements.

Question 8

The preparation cook at The Home Kitchen Catering Company receives a salary of $437 per week, plus a commission of 1.4% on all the catered party business. In a recent week, the catered party business amounted to $14,400. Deducted from her gross wages were the following: FICA tax $65.55, federal withholding tax $131.10, and city income tax $13.11. What was her net pay? $_______________

Accepted Answer

The answer of The preparation cook at The Home Kitchen...

Question 9

_____ is the changeable cost or expenses that will increase or decrease with the level of sales volume.

Accepted Answer

Variable costs are expenses that change with the volume of sales. Examples may include cost of raw materials, production supplies, and labor costs directly related to production. Property tax (B) is a fixed cost that does not vary with sales volume. Inventory (C) can be both a fixed or variable cost depending on the type of inventory, but it is not solely a variable cost. Fixed cost (D) is a cost that remains constant regardless of sales volume.

Question 10

____________________ ____________________ are taxes collected by the federal government.

Accepted Answer

The answer of ____________________ ____________________ are taxes collected by the...

Question 11

Which of the following is not considered a federal tax?

Accepted Answer

The Personal Property Tax is a state or local tax, not a federal tax. The other options (Employee's Withholding Tax, Income Tax, and Social Security) are all federal taxes.

Question 12

The _____ is the amount of money that is left after the variable costs are subtracted from the sales.

Accepted Answer

The answer of The _____ is the amount of money...

Question 13

The balance sheet is a necessary part of any business operation, almost as important as the profit and loss statement. It is a statement listing all the following except :

Accepted Answer

Depreciation is not listed on the balance sheet directly; instead, it is accounted for in the value of assets, reducing their value over time. The balance sheet primarily lists assets, liabilities, and equity at a specific point in time, not the depreciation expense itself, which is recorded on the income statement.

Question 14

The letters FICA stand for the _____, which became law in 1935.

Accepted Answer

The letters FICA stand for the Federal Insurance Contributions Act, which was enacted into law in 1935. The purpose of FICA is to provide funding for Social Security and Medicare programs.

Question 15

Which of the following is not considered a local tax?

Accepted Answer

FICA is a federal tax, while the others listed are examples of local taxes.

Question 16

_____ is money withheld from each employee's paycheck during the year to pay for the income tax that he or she owes the federal government at the end of the year.

Accepted Answer

Employee's Withholding Tax is specifically designed to withhold a portion of an employee's income to go towards paying federal income tax. Personal Property Tax is based on the value of personal property owned, Income Tax is the tax paid on income earned, and Social Security is a tax that funds retirement and disability benefits.

Question 17

Which of the following is not an example of an expenditure?

Accepted Answer

The answer of Which of the following is not an...

Question 18

The catering manager at Elegant Fare Catering Company receives a basic salary of $1,070 per month, plus a 2% commission on all the catered business. Last month, the catered business amounted to $31,700. What was her gross wage? $_______________

Accepted Answer

The answer of The catering manager at Elegant Fare Catering...

Question 19

Calculate the following problems concerning Social Security tax. Round answers to the nearest cent. A waiter at the Golden Gate Restaurant is paid a salary of $383 per week, plus tips. During the first week of July his tips amounted to $328. Assuming that the Social Security tax rate is 7.30%, how much FICA tax was deducted from his earnings for that week? $_______________

Accepted Answer

The answer of Calculate the following problems concerning Social Security...

Question 20

_____ is extremely important to any business operation when financial planning decisions must be made.

Accepted Answer

Planning profits is essential in financial planning decisions as it helps determine the level of financial success and sustainability of the business. Without proper profit planning, a business may end up making decisions that negatively impact their financial health in the long run. The cost of food sold, paying taxes, and advertising are also important factors to consider, but may not be as crucial in the context of financial planning decisions.

Quiz 15: Personal Taxes, Payroll, and Financial Statements

Which of the following is considered a state tax?

Which of the following is an example of a primary expense?

_____ are the amount of money you earn before any deductions (the amount taken away) are made.

The _____ is a summary or report of the business operation for a given period of time.

The manager of the food concession at the local swimming club receives a small weekly salary of $130, plus a commission of 5.5% on all food sales for the week. Last week, the food sales amounted to $4,877. What was her gross wage for the week? $_______________

There are two major _____ that must be prepared and are essential to the operation of a business: the profit and loss (income) statement, sometimes referred to as the P&L sheet, and the balance sheet.

_____ is the changeable cost or expenses that will increase or decrease with the level of sales volume.

____________________ ____________________ are taxes collected by the federal government.

Which of the following is not considered a federal tax?

The _____ is the amount of money that is left after the variable costs are subtracted from the sales.

The balance sheet is a necessary part of any business operation, almost as important as the profit and loss statement. It is a statement listing all the following except :

The letters FICA stand for the _____, which became law in 1935.

Which of the following is not considered a local tax?

_____ is money withheld from each employee's paycheck during the year to pay for the income tax that he or she owes the federal government at the end of the year.

Which of the following is not an example of an expenditure?

The catering manager at Elegant Fare Catering Company receives a basic salary of $1,070 per month, plus a 2% commission on all the catered business. Last month, the catered business amounted to $31,700. What was her gross wage? $_______________

_____ is extremely important to any business operation when financial planning decisions must be made.

are taxes collected by the federal government.