What Do Businesses Use to Identify,record,and Retain Financial Information and Includes

question 39

Multiple Choice

What do businesses use to identify,record,and retain financial information and includes the people,reports,procedures and other resources needed to compile transactions?

• A) Accounting information systems
• B) Financial accounting
• C) Bookkeeping
• D) Accounting
• E) Managerial accounting

Compute net income by contrasting total credits and debits from the income statement columns.

Distinguish between the implications of balance sheet credits exceeding debits and vice versa.

Relate the capital balance adjustments to its components including net income, withdrawals, and investments.

Apply proper adjusting entries for prepaid expenses and calculate the appropriate expense amount.

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Definitions:

Federal Withholding Tax

Income tax withheld from employees' wages by employers and sent directly to the government as partial payment of income tax.

Biweekly Wages

Compensation paid to employees every two weeks, typically resulting in 26 pay periods per year.

Backup Withholding

A tax method where the payer deducts taxes from an income payment before it is received by the payee, ensuring taxes are collected on certain payments.

Percentage Method

A way of calculating withholding tax on an employee's wages based on predefined percentage rates.