In the Current Year, Johnice Started a Profitable Bookkeeping Business

question 40

Multiple Choice

In the current year, Johnice started a profitable bookkeeping business as a sole proprietor.Johnice made $38,000 in her first year of operation.What two forms must Johnice file for her business?

• A)Schedules A and C
• B)Schedules D and E
• C)Schedule SE and C
• D)Schedules B and C
• E)None of the above

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Fiscal Year

A twelve-month period used for accounting purposes and financial reporting by businesses, which may not align with the calendar year.