What Is the Purpose of Federal Form 941

question 21

Multiple Choice

What is the purpose of Federal Form 941?

• A)Summarize the amount of unemployment tax paid and due by the company
• B)Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter
• C)Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year
• D)Summarize of all your W-2 forms

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Definitions:

Cash Budget

A forecast of cash inflows and outflows over a specific period, used to manage the company's cash flow and ensure financial stability.

Cash Disbursements

Financial transactions involving the outflow of cash, typically from an entity to vendors or employees, for expenses or purchases.

Beginning Cash Balance

The Beginning Cash Balance is the amount of cash that a company has at the start of a new accounting period, carried over from the end of the previous period.

Cash Disbursements

Money being paid out by a company during a period, including expenses, debt payments, and purchase of assets, usually tracked through a cash disbursements journal.