An Accounting Information System Has Three Basic Components: Source Documents

question 118

True/False

An accounting information system has three basic components: source documents and input devices,processing and storage,and internal controls.

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Definitions:

FICA Taxes

Federal Insurance Contributions Act taxes, which are payroll taxes deducted to fund Social Security and Medicare programs.

Federal Income Taxes

Taxes levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Allocated Tips

Tips that are assigned to an employee by their employer, typically in industries where tipping is customary, and are reported for tax purposes.

Medicare Taxes

Medicare Taxes are federal payroll taxes that fund the Medicare program, typically deducted from an employee's paycheck.