Questions and Answers
What is the purpose of the W-4 form?
A form completed by an employee to indicate his or her tax situation to the employer.
What does the I-9 form verify?
An employee's identity and eligibility to work in the United States.
What information does the W-2 form provide?
An employee's annual wages and the amount of taxes withheld.
What is a 1099 form used for?
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What is the purpose of the 1040 form?
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When are taxes due?
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What qualifies someone as a dependent?
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What does Social Security refer to?
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What is gross pay?
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What is net pay?
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What is a pay stub?
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What is an excise tax?
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The income statement equation is _____ - _____ = _____
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What are examples of revenue?
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What are examples of expenses?
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Study Notes
Tax Forms
- W-4: Employee form indicating tax situation (exemptions, status) to determine withholding amount.
- I-9: Verification form to confirm employee identity and employment eligibility in the U.S.
- W-2: Employer-mandated form reporting annual wages and tax withholdings sent to both employee and IRS.
- 1099: Form detailing compensation for non-employees, such as freelance or contractor payments.
- 1040: IRS standard form for individuals to file annual income tax returns.
- April 15: Deadline for tax submissions, marking when taxes are due.
Tax-Related Terms
- Dependent: Individual relying on a taxpayer for more than half of their financial support.
- Social Security: Funding mechanism for retirement benefits through taxation.
- Gross Pay: Total earnings before tax deductions are applied.
- Net Pay: Earnings after all applicable taxes and deductions have been removed.
- Pay Stub: Document provided with paychecks, outlining earnings and deductions for each pay period.
- Excise Tax: Tax imposed on the sale of specific goods like gasoline and alcohol.
Income Statement
- Income Statement Equation: Financial formula expressing that Revenues minus Expenses equals Net Income.
- Examples of Revenue: Categories include Sales Revenue, Fee Revenue, Interest Revenue, and Rent Revenue.
- Examples of Expenses: Common costs encompass employee salaries, advertising expenditures, rent, utilities, and depreciation of assets like buildings and equipment.
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Description
This quiz focuses on essential tax forms such as the W-4 and I-9, which are crucial for understanding employee tax withholding and employment eligibility. It is a helpful guide for anyone studying accounting or finance, providing key definitions and their implications in financial reporting.
