CPP CERTIFICATION FINAL PAPER
SOLVED QUESTIONS WITH FULL PRACTICE
SOLUTION
●● Form W-9
Answer: First, it is used by third parties to collect identifying
information to help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the
person who files the information return for verification purposes.
The information on the Form W-9 and the payment made are reported on
a Form 1099.
The second purpose is to help the payee avoid backup withholding. The
payer must collect withholding taxes on certain reportable payments for
the IRS. However, if the payee certifies on the W-9 they are not subject
to backup withholding they generally receive the full payment due them
from the payer. This is similar to the withholding exemptions
certifications found on Form W-4 for employees.
●● Form SS-5
Answer: Apply for an original Social Security card
Apply for a replacement Social Security card
,Change or correct information on your Social Security number record
●● Form SS-4
Answer: Application for Employer Identification Number (EIN)
●● Accounting equation (Balance Sheet)
Answer: Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
●● Asset (Debit or Credit Normal Balance?)
Answer: Debit
●● Expense (Debit or Credit Normal Balance?)
Answer: Debit
●● Liability (Debit or Credit Normal Balance?)
Answer: Credit
●● Capital (Debit or Credit Normal Balance?)
Answer: Credit
●● Owners Equity (Debit or Credit Normal Balance?)
,Answer: Credit
●● Revenue (Debit or Credit Normal Balance?)
Answer: Credit
●● Escheat laws
Answer: Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable
garnishments, deferred compensation, payroll services or bonuseshave a
potential (and probable) unclaimed property obligation.
●● Schedule D (Form 941)
Answer: to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and
Tax Statement (Copy A), and Forms 941, Employer's QUARTERLY
Federal Tax Return, for the totals of social security wages, Medicare
wages and tips, social security tips, federal income tax withheld, and
advance earned income credit (EIC) payments
●● Workweek for 14 and 15-year-olds
Answer: Outside school hours, and on school days including Fridays, no
more than 3 hours.
No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
, No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between
June 1 and Labor Day.
●● 1) Which form is used for Determination of Employee Work Status
for Purposes of Federal Employment Taxes and Income Tax
Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8
Answer: D
●● 2) What amount must an independent contractor be paid for services
rendered before an employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600
Answer: C
●● 3) Qualified real estate agents and direct sellers are which of the
following?
SOLVED QUESTIONS WITH FULL PRACTICE
SOLUTION
●● Form W-9
Answer: First, it is used by third parties to collect identifying
information to help file information returns with the IRS.
The form is never actually sent to the IRS, but is maintained by the
person who files the information return for verification purposes.
The information on the Form W-9 and the payment made are reported on
a Form 1099.
The second purpose is to help the payee avoid backup withholding. The
payer must collect withholding taxes on certain reportable payments for
the IRS. However, if the payee certifies on the W-9 they are not subject
to backup withholding they generally receive the full payment due them
from the payer. This is similar to the withholding exemptions
certifications found on Form W-4 for employees.
●● Form SS-5
Answer: Apply for an original Social Security card
Apply for a replacement Social Security card
,Change or correct information on your Social Security number record
●● Form SS-4
Answer: Application for Employer Identification Number (EIN)
●● Accounting equation (Balance Sheet)
Answer: Assets = Liabilities + Capital
Assets - Liabilities = (Shareholders' or Owners' Equity)
●● Asset (Debit or Credit Normal Balance?)
Answer: Debit
●● Expense (Debit or Credit Normal Balance?)
Answer: Debit
●● Liability (Debit or Credit Normal Balance?)
Answer: Credit
●● Capital (Debit or Credit Normal Balance?)
Answer: Credit
●● Owners Equity (Debit or Credit Normal Balance?)
,Answer: Credit
●● Revenue (Debit or Credit Normal Balance?)
Answer: Credit
●● Escheat laws
Answer: Refer to unclaimed property obligations. Companies who issue
checks-for wages, payroll, employee commissions, returnable
garnishments, deferred compensation, payroll services or bonuseshave a
potential (and probable) unclaimed property obligation.
●● Schedule D (Form 941)
Answer: to explain certain discrepancies (caused by acquisitions,
statutory mergers, and consolidations) between Forms W-2, Wage and
Tax Statement (Copy A), and Forms 941, Employer's QUARTERLY
Federal Tax Return, for the totals of social security wages, Medicare
wages and tips, social security tips, federal income tax withheld, and
advance earned income credit (EIC) payments
●● Workweek for 14 and 15-year-olds
Answer: Outside school hours, and on school days including Fridays, no
more than 3 hours.
No more than 8 hours on a non-school day.
When school is in session, no more than 18 hours per week.
, No more than 40 hours during a week when school is out.
Between the hours of 7 a.m. And 7 p.m, extended to 9 p.m. Between
June 1 and Labor Day.
●● 1) Which form is used for Determination of Employee Work Status
for Purposes of Federal Employment Taxes and Income Tax
Withholding?
A. Form I-9
B. Form SS-4
C. Form SS-5
D. Form SS-8
Answer: D
●● 2) What amount must an independent contractor be paid for services
rendered before an employer is obligated to give them a 1099-MISC?
A. Once total reaches $600 or more
B. Total payments reach $600 or more for company's fiscal year
C. Total payments reach $600 or more for calendar year
D. Any individual payment makes during calendar year exceeding $600
Answer: C
●● 3) Qualified real estate agents and direct sellers are which of the
following?
