Which of the Following Is the System Used to Record

question 106

Multiple Choice

Which of the following is the system used to record a firm's financial transactions in a routine and clerical process?

• A) auditing
• B) bookkeeping
• C) record keeping
• D) accounting

---

Definitions:

Tax Liability

The total amount of tax owed to federal, state, or local tax authorities for a given period.

Form 4070

A tax form used by employees in the United States to report tips received to their employer.

Tax Withholding

The portion of an employee's wages that is not included in their paycheck because it is sent directly to the federal, state, or local tax authorities as partial payment of income tax.

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act to fund Social Security and Medicare, required deductions from workers' paychecks.