Hong Earns $128,500 in Her Job as a Physician's Assistant

question 847

Multiple Choice

Hong earns $128,500 in her job as a physician's assistant. She also has her own business selling cosmetics. This business generated $10,000 of earnings. What is Hong's self- employment tax for 2018?

• A) $1,412
• B) $290
• C) $1,530
• D) $268

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Definitions:

Cash Balance Per Books

The amount of cash shown in a company’s financial records at a specific point in time, which may differ from the actual cash balance due to outstanding transactions.

Petty Cash Fund

A small amount of cash kept on hand for covering minor and incidental expenses in a business, managed through a petty cash system.

Journal Entry

An official written record that represents a transaction in accounting, used to transfer information to the general ledger.

Cash Short and Over

An account that tracks discrepancies between the expected cash amount and the actual amount received or disbursed.