Exam 15: Personal Taxes, Payroll, and Financial Statements

____________________ expenses are expenses such as utilities, basic staff (preparation, service, etc.), telephone service, repairs and maintenance, licenses, and exterminating costs.

_____ is the changeable cost or expenses that will increase or decrease with the level of sales volume.

____________________ ____________________ is found by subtracting total operating expenses from gross margin.

Which of the following is an example of a primary expense?

State taxes are established and enforced by federal law so that each individual citizen pays what he or she properly owes to support the functions financed by the federal government.

In a budget, the areas listed under the two major components, income and assets, will vary, depending on the size of the overall operation.

Examples of ____________________ expenses are replacement costs for china, laundry, paper supplies, and payroll or labor costs.

The ____________________ ____________________ or gross profit is found by subtracting the cost of food sold from the total sales.

If an employee does not earn enough money to pay taxes, he or she must file an income tax return to get the money back that was withheld by his or her employer for taxes.

____________________ stands for the Federal Insurance Contributions Act, which became law in 1935 and established the Social Security system and tax.

Which of the following is not considered a federal tax?

____________________ is a plan for adjusting expenditures to probable income for a calendar or fiscal year.

A ____________________ ____________________ is defined as the time between one yearly settlement of financial accounts and another.

Depreciation is the act of replacing an item as it wears out.

_____ are the amount of money you earn before any deductions (the amount taken away) are made.

____________________ ____________________ is the amount of money one earns before any deductions are made.

The _____ is the amount of money that is left after the variable costs are subtracted from the sales.

Calculate the following problems concerning Social Security tax. Round answers to the nearest cent. The catering manager of the Gourmet Catering Company works on a % commission of total sales for each week. During the first week in June total sales were $19,800. How much Social Security tax did she pay if the rate is 7.30%? $_______________

Total variable profit is calculated by subtracting the variable cost from ____________________ ____________________.