Pre-Test

Let’s do a quick pre-test so you can see what you know right now. Each of these has one or more correct answers. A link to the answers will show up on the right under the Modules navigation bar as you scroll down.

1. What must small businesses pay income tax on?

a. Gross income
b. Net profit
c. Net income
d. Gross profit

2. Which are the two primary accounting methods?

a. Cash
b. Debit
c. Accrual
d. Fiscal

3. Which are the primary taxes businesses pay? Select all that apply.

a. Income tax
b. Self-employment tax
c. State income tax
d. Luxury tax
e. Local taxes

4. If you are self-employed and have not incorporated, which tax form would you use to file your taxes?

a. Form 1040, Schedule C or C-EZ
b. Form 1065
c. Form 1120S
d. Form W2

5. Which form reports employee annual wages and the amount of taxes withheld from their paycheck?

a. W2
b. W-4
c. Form 940
d. Form 941