If an Employer Fails to Make Payroll Tax Deposits on Time,the

question 25

Multiple Choice

If an employer fails to make payroll tax deposits on time,the firm will be penalized if the IRS finds evidence of ________.

• A)Willful disregard
• B)Inadvertent negligence
• C)Incompetent reporting
• D)Mistaken analysis

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Definitions:

Retained Earnings

Accumulated net income that a company decides to keep rather than distribute to its shareholders as dividends.

Owners' Equity

Owners' equity represents the ownership interest of the shareholders or owners in the net assets of a company, reflecting the difference between assets and liabilities.

Current Liability

A financial obligation that is due within one year or within the normal operating cycle of the business.

Worksheet

A paper or spreadsheet used by accountants to prepare adjusting entries and to produce financial statements.