Which of the Following Suggests That a Working Taxpayer Is

question 6

Multiple Choice

Which of the following suggests that a working taxpayer is an independent contractor rather than an employee?

• A)Works for more than one firm
• B)May realize a loss from business activities
• C)Sets own working hours
• D)Works somewhere other than on employer premises
• E)All of these suggest independent contractor status

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Definitions:

Expense

An outflow of money to another person or company to pay for an item or service, or for a cost required to operate a business.

Allowance for Doubtful Accounts

A contra-asset account that estimates the portion of accounts receivable which may not be collectible.

Adjusted

Changed or modified to reflect a more accurate valuation or account of a particular item or financial record.

Accounting Period

The span of time at the end of which a company or organization reports its financial performance and position; typically monthly, quarterly, or annually.