1 A sole proprietor is ________. Choose one answer. a. a shareholder in an S-Corporation. b. one or more individuals who are owners in whole or part of an unincorporated business. c. someone who owns an unincorporated business by himself or herself. d. all of the above could be considered sole proprietors.

 Question 2 Marks: 1 Which of the following statements is true concerning an Independent Contractor? Choose one answer. a. An Independent Contractor is an individual who determines how the work they are to be paid to do, will be done. b. An Independent Contractor is any individual who receives a W-2 for compensation that they receive. c. An Independent Contractor is any taxpayer who decides that they want to record their income and expenses on Schedule C or C-EZ. d. An Independent Contractor does not offer their services to the general public.

 Question 3 Marks: 1 Payments of ___________ or more for services performed for your business by people not treated as your employees (such as independent contractors) should be issued a 1099-MISC. Recipients of 1099MISC may need to file Schedule C or C-EZ. Choose one answer. a. $10.00 b. $60.00 c. $600.00 d. $1,000.00 

Question 4 Marks: 1 As a self-employed individual, generally you must file a U.S. Income Tax Return if your net earnings from self-employment were: Choose one answer. a. $500 or more b. $5,000 or more c. More than $100 d. $400. or more 

Question 5 Marks: 1 Which of the following statements is true concerning the accounting methods for a sole proprietorship? Choose one answer. a. Sole Proprietors can not use a fiscal tax year. b. If inventory is necessary to account for income, the sole proprietor must generally use the accrual method of accounting. c. Under the cash method of accounting, expenses generally are recognized by the sole proprietor in the tax year that they are actually paid. d. All of the above are true statements.

 Question 6 Marks: 1 Which of the following statements is false regarding the Self-Employment (SE) tax? Choose one answer. a. A self-employed individual may need to pay quarterly estimated SE tax, in addition to filing annually. b. When figuring self-employment tax owed, a self-employed individual will reduce selfemployment income by the amount paid in self-employment tax before applying the SE tax rate. c. You calculate your self-employment tax on IRS Schedule SE and report that amount in the "Other Taxes" section of Form 1040 as the IRS needs to differentiate the SE tax from the income tax. d. The self-employment tax is divided into two parts - the Social Security part and the Medicare part - and each part is calculated separately.