Which of the Following Statements Regarding Employee Versus Independent Contractor

question 96

Multiple Choice

Which of the following statements regarding employee versus independent contractor status is false?

• A) The determination as to whether a worker is an employee or an independent contractor is based on a subjective set of guidelines.
• B) An employer has a financial incentive to classify a worker as an independent contractor instead of an employee.
• C) The IRS has a higher probability of collecting income and payroll taxes from an independent contractor than from an employee.
• D) If the IRS reclassifies a worker from independent contractor to employee, the employer can become liable for the employee's share of unpaid payroll taxes.

Comprehend the replenishment process of a petty cash fund.

Identify the parties involved in transactions using checks.

Understand the components of a bank reconciliation statement.

Recognize errors in accounting for cash transactions and their correction.

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Definitions:

Lean Manufacturing

A systematic method for minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Labor Tasks

Specific duties or work activities performed by employees as part of their job responsibilities.

Lean Manufacturing

An organized approach to reducing waste in a production system without compromising efficiency.

Make to Stock

A production strategy where products are manufactured in anticipation of demand, based on forecasts, and stored in inventory.