The Careful and Timely Preparation of All Payroll Withholdings and Employer's

question 59

Multiple Choice

The careful and timely preparation of all payroll withholdings and employer's portion of withholdings is necessary to avoid heavy fines.The most important control in the timely preparation of these returns is

• A)computerized preparation of income tax returns.
• B)a well-defined set of policies that indicate when each form must be filed.
• C)independent verification of computer output by a competent individual.
• D)a Gantt chart.

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Definitions:

Days' Sales

A measure often used in the context of 'Days' Sales in Inventory' which indicates the average number of days it takes for a company to sell its inventory.

Raw Materials Inventory

Consists of the basic materials and components required to manufacture goods.

Production

The process of creating, manufacturing, or enhancing products or services for sale.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency in managing stock levels.