All Things Tax
If you fully own an LLC that is not taxed as a corporation, how does your company file its annual tax return (ie. what form?)
You4 1040 personal tax return, SCH C.
What is 1 of the entity types that requires owners to take a salary through payroll?
C-Corp or S-Corp
If your retained earnings has a debit balance at the end of the year, do they have accumulated profit or loss from prior years?
Loss
What statement would you see "As of 12/31/2024" as the date/time period
Balance Sheet
What does EBITDA stand for?
What is the tax form C-Corps are required to file their annual return?
1120
An employee paid for their own new computer charger and the company informed them they would be reimbursed for this $20 expense, if they send in a receipt(Accountable Plan), within their next paycheck. Is that reimbursable expense taxable income?
No - Accountable Plan reimbursements should not be lumped into wages and specifically noted as a reimbursement.
Nonaccountable plans (ie. no receipt or employees are reimbursed in excess of actual cost of expense) are subject to tax.
What entity types should not show APIC in their equity sections?
SMLLC, MMLLC/Partnerships and Non-Profits
a Customer pays you $500 for the product they purchased, but your POS takes a $100 processing fee, so you receive $400 from that sale. What is your gross revenue?
$500
what are the 2 emails addresses to cc on a client response to generate a ticket?
support@
tax@
What is the schedule called on a lot of returns that indicates what the book net income was for the year you are filing?
M-1
In which account on the P&L should you be able to locate Employee income taxes withheld from their paychecks?
Gross Wages/Salary and Wages, as this is a deduction that impacts employee take home pay, not gross pay on the P&L.
Do C-Corps have distributions or Dividends?
Dividends
Where would you find unrealized gains/(losses) on the financial statements?
Other income/expenses on the P&L
It is October and a client reaches out to ask you to make numerous reclassifications and adjustments to numbers/balances in Jan and Feb, not due to errors, but they decide they want to show things substantially differently. How would you proceed?
-either get manager involved or indicate directly to your client that these are previously closed periods and the requests they have are not in scope and would warrant a special hourly project.
What is the deadline, without extension, for a partnership/multi-member LLC annual tax filing?
3/15
Your client's books are on an accrual basis and you have reconciled all banking activity for June. You see a large/material drop in salary and wages from May to June, but no employees were terminated or wage changes. They have a bi-weekly pay cycle. What caused this and what is the remedy.
Last pay cycle of the month cash likely did not impact the bank until next month/July, and therefore a payroll accrual is needed to recognize June expense in the proper period.
What are all entity types that require a CAP table?
Partnerships(MMLLC), C-Corps and S-Corps.
Where would you find Accrued Revenue on the financial statements?
Current Assets on the Balance Sheet.
What is your Gross Profit with the below facts?
Revenue - $100,000
COGS - $30,000
Operating Expenses - $35,000
Other Expense - $5,000
$70,000
If a S-Corp is owned by 1 individual, what schedule would the owner be required to use to report on their personal return?
K-1
You notice that federal unemployment taxes (FUI) were a part of Employer Payroll tax computed for every one of your employees in the first half of the year, but by the end of the year, you do not see any for those employees, and only see it on an employee that was hired on 12/28. Why might this be?
FUI is phased out, companies have to pay FUI on the first $7,000 of each employees annual salary/ wages paid in the year and then it stops
If you were in a financial review meeting with your non-profit client, and they kept mentioning their retained earnings, what NFP account would they be referring to?
Unrestricted Net Assets
What would cause something to be a long-term liability, as opposed to a current liability?
maturity/due not within the next 12 months.
A client is a 20th due date client and on the 12th has requested statements. You have already completed the work, but were waiting to send the statements closer to the 20th. What is your response to your client?
Provide statements (if actually ready), and gently inform client they are currently engaged for the 20th, but are happy to share them as they were ready this month, but if they need them consistently before the 20th, we could change their scope/fee to include an expedited close.