Which of the Following Is Not a Reason for a Business

question 13

Multiple Choice

Which of the following is not a reason for a business to prefer to hire an independent contractor rather than an employee?

• A)The independent contractor does not participate in company fringe benefits.
• B)The company does not have to pay FICA taxes on the amounts paid to the independent contractor.
• C)The company does not have to supply a workplace or tools to the independent contractor.
• D)The company only has to pay FUTA on the independent contractor's wages.

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Definitions:

Accounting Treatment

Refers to the method of applying accounting principles and rules to transactions and financial events in a company’s financial statements.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

U.S. Tax Rules

The laws and regulations governing the taxation of individuals and corporations in the United States.

IFRS

Stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.