Jordan Performs Services for Ryan

question 104

Multiple Choice

Jordan performs services for Ryan. Which, if any, of the following factors indicate that Jordan is an independent contractor, rather than an employee?

• A)Ryan sets the work schedule.
• B)Ryan provides the tools used.
• C)Jordan files a Form 2106 with his Form 1040.
• D)Jordan is paid based on tasks performed.
• E)None of these.

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Definitions:

Rental Income

Earnings generated from leasing out property or equipment, recorded as income by the property owner or lessor.

Normal Balance

The aspect of an account, be it on the debit or credit side, designated for recording increments to the account.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

Adjusting Entry

An entry made in the accounts to reflect a correct amount of revenues and expenses for a specific period before preparing the financial statements.