Michigan Builders Exam (AYPO) Questions with
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Terms in this set (169)
Employers summary of W-2s issued to employees.
The IRS W-3 form, also known as the Transmittal of
Wage and Tax Statements, is a summary of all the W-2
forms an employer has issued to their employees. It
What is a form W-3?
provides the total amounts for wages, social security
wages, and Medicare wages that you reported on all
of your employees' W-2 forms. The employer has to
send this form to the Social Security Administration
(SSA) along with the copies of W-2 forms.
500
The Federal Unemployment Tax Act (FUTA) is a tax
If a contractor's FUTA that employers pay to fund the federal government's
liability exceeds __________, unemployment insurance program. If a contractor's
then FUTA taxes are FUTA tax liability is more than $500 for the calendar
deposited quarterly year, then the contractor is required to deposit that
tax on a quarterly basis. This ensures that the IRS
receives the taxes in a timely manner and reduces the
risk of large, lump sum payments.
, some discrepancies will be expected with long-term
accounts receivable and the final disposition of the
contract.
It is best to keep separate
Keeping separate ledgers for short-term and long-
ledgers for short-term and
term accounts receivable can help clarify the financial
long-term accounts
situation of a business. Long-term receivables often
receivable because...
have more discrepancies due to the extended time-
frame and complexities involved in long-term
contracts, including changes in project scope, price
adjustments, etc.
match the inflow and outflow of cash and place both
in the same tax period.
When it comes to
comparing short-term and
This concept is known as the matching principle in
long-term income with the
accounting. It states that a company should report an
timeframe when costs and
expense in its income statement in the period in which
expenses were incurred, it
the related revenues are earned. This principle
would be best to...
enhances the accuracy of a company's financial
statements.
The Good Contractor Co. 2
needs to find their
working capital ratio. Their Working capital ratio, also known as the current ratio,
current assets are measures a company's ability to pay off its current
$30,000, and their current liabilities (due in a year or less) with its current assets.
liabilities are $15,000. What It is calculated as current assets divided by current
is the working capital liabilities. In this case, the working capital ratio would
ratio? be $30,000/$15,000 = 2.
Verified Solutions
Save
Terms in this set (169)
Employers summary of W-2s issued to employees.
The IRS W-3 form, also known as the Transmittal of
Wage and Tax Statements, is a summary of all the W-2
forms an employer has issued to their employees. It
What is a form W-3?
provides the total amounts for wages, social security
wages, and Medicare wages that you reported on all
of your employees' W-2 forms. The employer has to
send this form to the Social Security Administration
(SSA) along with the copies of W-2 forms.
500
The Federal Unemployment Tax Act (FUTA) is a tax
If a contractor's FUTA that employers pay to fund the federal government's
liability exceeds __________, unemployment insurance program. If a contractor's
then FUTA taxes are FUTA tax liability is more than $500 for the calendar
deposited quarterly year, then the contractor is required to deposit that
tax on a quarterly basis. This ensures that the IRS
receives the taxes in a timely manner and reduces the
risk of large, lump sum payments.
, some discrepancies will be expected with long-term
accounts receivable and the final disposition of the
contract.
It is best to keep separate
Keeping separate ledgers for short-term and long-
ledgers for short-term and
term accounts receivable can help clarify the financial
long-term accounts
situation of a business. Long-term receivables often
receivable because...
have more discrepancies due to the extended time-
frame and complexities involved in long-term
contracts, including changes in project scope, price
adjustments, etc.
match the inflow and outflow of cash and place both
in the same tax period.
When it comes to
comparing short-term and
This concept is known as the matching principle in
long-term income with the
accounting. It states that a company should report an
timeframe when costs and
expense in its income statement in the period in which
expenses were incurred, it
the related revenues are earned. This principle
would be best to...
enhances the accuracy of a company's financial
statements.
The Good Contractor Co. 2
needs to find their
working capital ratio. Their Working capital ratio, also known as the current ratio,
current assets are measures a company's ability to pay off its current
$30,000, and their current liabilities (due in a year or less) with its current assets.
liabilities are $15,000. What It is calculated as current assets divided by current
is the working capital liabilities. In this case, the working capital ratio would
ratio? be $30,000/$15,000 = 2.
