A Major Failure on the Part of an Employee to Exercise

question 107

Multiple Choice

A major failure on the part of an employee to exercise care in the work environment would likely be considered to be:

• A)Serious misconduct
• B)Just cause
• C)A mistake
• D)Employee resistance to change
• E)Gross negligence

Recognize the circumstances under which a taxpayer must report income and the impacts of economic benefits on taxability.

Identify the tax treatment of various types of dividends and unemployment compensation.

Understand the tax principles related to employee discounts in restaurants and the specifics of calculating tax liability.

Grasp the concepts of income realization and the specific exclusions available concerning interest income from various sources.

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Definitions:

Posting

The process of recording financial transactions in the ledger from the journal in accounting.

Journalized Transactions

The formal recording of financial transactions in the accounting journals as part of the double-entry bookkeeping system.

Ledger Accounts

Records within a ledger that show the transaction history and current balance of each account.

Owner's Drawings Account

An account that tracks the amount of money a business owner withdraws from the company for personal use.