Finance Again

Tue, 23 Feb 2016 20:31:33 GMT

Lets put a couple of questions out there to give an idea of the type of information you might want to review for the assessment:

Are you familiar with payroll and the type of taxes you need to pay from the employer?an example question on payroll taxes could consist of the following:
FICA Tax is a combination of:

A: social security tax and federal tax
B: social security tax and Medicare tax
C: Medicare tax and Federal Tax
D: Medicare tax and state Tax

answer would be B

What about the type of information listed on the balance sheet versus the income statement?

An example of information found on an income statement is:

A: Liability

B: Assett

C: Expense

D: Equity

Answer is C: This question is a little rough as it was done on the fly but it points out that expenses are found on the income statement---liabilities, assets and equity are listed on the balance sheet

We don't expect you to have the knowledge of an accountant--if you can track the basics that is good.

Tue, 23 Feb 2016 20:35:09 GMT

What about differences in corporate structure--C corp, S corp, etc

The corporation structure which pays a flat 35% tax rate would be:

A: S Corp
B: C Corp
C: LLC
B: PA

answer would be B for C Corp

Just familiarize yourself with the definitions.

Tue, 23 Feb 2016 20:37:56 GMT

How about differences in fixed costs versus variable costs?

Rent would be an example of a fixed cost
Payroll would be variable as hours fluctuate

anything that stays the same such as rent or lease payment would be fixed---anything that is going to change monthly would be considered a variable cost