Adjusting Entries Are Required

question 2

Multiple Choice

Adjusting entries are required

• A) yearly.
• B) quarterly.
• C) monthly.
• D) every time financial statements are prepared.

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Definitions:

Form W-2

An official document issued by employers in the United States to report an employee's annual wages and the amount of taxes withheld from their paycheck.

Federal Form 940

A United States tax form used by employers to report annual Federal Unemployment Tax Act (FUTA) tax.

Unemployment Tax

A tax paid by employers based on the total payroll and the unemployment claims filed by former employees, financing unemployment benefit programs.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.