MHIC Exam 2025-2026 latest update
questions well answered
MHIC
JANUARY 24, 2025
SANCHY
SANCHY
,MHIC Exam 2025-2026 latest update
questions well answered
Business Types not Required to have EIN # - correct answer ✔✔-sole
proprietorships with no employees
-LLCs with single owner
S corporation - correct answer ✔✔a business entity that meets certain
requirements to be able to inherit the protective benefits of being a corporation,
but be taxed as a partnership.
- must be domestically incorporated
- must have only a single type of stock and less than 100 shareholders.
- shareholder distributions are taxed on the individual shareholder tax returns
- it can pass these incomes to shareholder without having to pay any fed
corporate tax, deemed a "pass through." Owner pays taxes at their respective tax
rate and not the corporate tax rate
Self Employment Tax - correct answer ✔✔Tax for individuals that work for
themselves to pay their portion of Social Security and Medicare benefits.
Requirements to be Classified as IRS Deductible Expense - correct answer ✔✔to
be deductible, it must be an "ordinary" and "necessary" expense. Thus it is an
expense that is common in your industry, but is also helpful/appropriate for your
trade or business.
, Employment Taxes that are not Withheld from Paychecks - correct answer ✔✔-
FUTA
-State Unemployment tax
FICA - correct answer ✔✔- Stands for Federal Insurance Contributions Act
- Employers withhold FICA (social security and Medicare) from employee
paychecks and also pay a matching employer portion.
-Form 941 reconciles this
Franchise tax - correct answer ✔✔A tax levied on the right to do business in a
state as a corporation. Although income considerations may come into play, the
tax usually is based on the capitalization of the corporation.
The Basic Accounting Cycle - correct answer ✔✔1. Classifying and recording
transactions
2. Posting transactions
3. Preparing a trial balance
4. Preparing and adjusted trial balance
5. Preparing financial statements
6. Analyzing financial statements
Who is responsible for providing Personal Protective Equipment (PPE) - correct
answer ✔✔Employer
;' Accounting Posting vs. Account - correct answer ✔✔- A posting occurs when a
transaction listed in a journal gets transferred to appropriate accounts. Accounts
are an official register of value
questions well answered
MHIC
JANUARY 24, 2025
SANCHY
SANCHY
,MHIC Exam 2025-2026 latest update
questions well answered
Business Types not Required to have EIN # - correct answer ✔✔-sole
proprietorships with no employees
-LLCs with single owner
S corporation - correct answer ✔✔a business entity that meets certain
requirements to be able to inherit the protective benefits of being a corporation,
but be taxed as a partnership.
- must be domestically incorporated
- must have only a single type of stock and less than 100 shareholders.
- shareholder distributions are taxed on the individual shareholder tax returns
- it can pass these incomes to shareholder without having to pay any fed
corporate tax, deemed a "pass through." Owner pays taxes at their respective tax
rate and not the corporate tax rate
Self Employment Tax - correct answer ✔✔Tax for individuals that work for
themselves to pay their portion of Social Security and Medicare benefits.
Requirements to be Classified as IRS Deductible Expense - correct answer ✔✔to
be deductible, it must be an "ordinary" and "necessary" expense. Thus it is an
expense that is common in your industry, but is also helpful/appropriate for your
trade or business.
, Employment Taxes that are not Withheld from Paychecks - correct answer ✔✔-
FUTA
-State Unemployment tax
FICA - correct answer ✔✔- Stands for Federal Insurance Contributions Act
- Employers withhold FICA (social security and Medicare) from employee
paychecks and also pay a matching employer portion.
-Form 941 reconciles this
Franchise tax - correct answer ✔✔A tax levied on the right to do business in a
state as a corporation. Although income considerations may come into play, the
tax usually is based on the capitalization of the corporation.
The Basic Accounting Cycle - correct answer ✔✔1. Classifying and recording
transactions
2. Posting transactions
3. Preparing a trial balance
4. Preparing and adjusted trial balance
5. Preparing financial statements
6. Analyzing financial statements
Who is responsible for providing Personal Protective Equipment (PPE) - correct
answer ✔✔Employer
;' Accounting Posting vs. Account - correct answer ✔✔- A posting occurs when a
transaction listed in a journal gets transferred to appropriate accounts. Accounts
are an official register of value
