For the Past Several Years, Bill Reynolds Has Retained Accountant

question 204

Multiple Choice

For the past several years, Bill Reynolds has retained accountant Chelsea Jones for help in preparing his personal income tax forms. Bill's boss recommended Chelsea because she had done a good job setting up the company's new accounting system. Bill is very satisfied with Chelsea's work and feels that the fees she charges are quite reasonable. Chelsea would be classified as a(n) :

• A) independent auditor.
• B) private accountant.
• C) public accountant.
• D) accounting broker.

---

Definitions:

OASDI

Stands for Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retired individuals, the disabled, and survivors of deceased workers.

Double Time

A rate of payment that is twice the regular wages, often paid for working on holidays or outside of normal working hours.

Time and a Half

An overtime pay rate, typically 1.5 times the employee's regular hourly wage, paid for hours worked beyond the standard workweek.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax funding Social Security and Medicare benefits.