Accounting Terminologies, Business Documents, and Tax Information

This final multiple choice quiz covers subject matter from the course, especially the terminology, the business documents (quotes, contracts and invoices) and tax information.

1. How many years do you need to keep your business receipts on file, and in what format?

Four years. Originals plus any thermal paper receipts stapled to a photocopy.

Seven years. Original receipts or credit card statements. Either will do.

Seven years. Original receipts or photocopies. Either will do.

Seven years. Originals plus any thermal paper receipts stapled to a photocopy. 

2. If an American artist was born in June of 1949, created an image in January of 1979 and died in September 2019, what month and year does that image become public domain?

June 2019.

September 2094.

September 2089.

June 2069.

3. If you are registered as a business in Ontario with your own GST/HST number, how much do you charge in business tax on a job paying $500 from a client in Quebec? 

$5.50

$25

$50

$65

4. You illustrated a cover for Time Magazine, which insisted on having sub-licensing rights to your image. They now have the right to re-licence that image for use as:

A billboard.

A book jacket.

A magazine cover.

All of these options (magazine cover, billboard, book jacket).

5. As a Canadian citizen, when doing freelance work from Canada, the most fully accurate answer here is that:

you never owe income tax to any country because you're a freelancer.

you owe American income tax to the U.S.A. on Canadian work.

you owe American income tax to the U.S.A on work from England.

you owe Canadian income tax on the work you get from any country.

6. Which type(s) of rights licensing, by definition, cause(s) you to lose authorship of your work?

Work for hire.

Work for hire and buyout.

Buyout.

Crowd-sourcing and spec work.

7. Which group of business expenses are 100% deductible in your first year of business?

A sketchbook, rubber bands, a studio you live in, a portfolio case, bookkeeping software, a desk that cost $100, drawing ink.

Acrylic paint, paperclips, bookkeeping services, business cards, attending an illustration conference, rent for a studio that you don't live in.

Erasers, file folders, a scanner, the cost of a hotel when seeing potential clients in New York, post-it notes, paint brushes, a website domain.

A computer printer, taxi fare to meet with a client, pencils, graph paper, entry fees for an illustration competition, accounting services, a mailing list.

8. What is the maximum amount you can legally charge on overdue invoice payments?

26% per year.

1.5% per month.

2% per month.

15% per month.

9. Which is NOT true?

A description of a job belongs on all quotes, contracts and invoices.

Signatures belong on a contract.

A schedule belongs on a quote.

Contract numbers must be included on any contract.

10. Client changes to your final artwork, made without your permission, violate your...

Civil rights.

Derivative rights.

Right of way.

Right of celebrity.

11. The usual (non Covid-19 affected) deadline date to submit an annual Canadian personal income tax return, without a financial penalty for late filing, is … ?

Midnight, April 1st.

Midnight, April 30th.

Midnight, April 31st.

Midnight, January 1st.

12. Which is NOT true about the GST tax?

It is included as part of your income tax.

It is a federal tax.

It is currently 5% of the total charge.

You do not charge it to American clients.

13. What is/are the most likely form(s) of payment you will receive from your clients?

Cheques or e-transfer.

Both Bitcoin and cheques.

Certified cheques.

Both certified cheques and cash.

14. Which is TRUE about GST/HST?

You are not forced to charge it until your income hits $30,000 a year.

You not permitted to charge it until your income hits $30,000 a year.

You only have to pay it at the exact same time as you do your income tax.

You collect it from American clients if their publications are circulated in Canada.

15. What is the primary reason for photocopying your business receipts?

In case they get lost.

Because your computer might crash.

The thermal paper that they are printed on fades.

In case your accountant needs copies.

16. Which of the following is NOT true about HST if you have your own HST number?

It's 13% in Ontario.

It raises your income tax.

It is free to register for an HST number.

You charge it to all of your clients in Ontario.

17. Which of the following is TRUE about registering your business?

You can't qualify as an incorporation if you are one person.

As a small business, you will register as sole proprietor.

You can only register your business in Ontario if you were born in Ontario.

You can't do freelance work until you register your business.

18. You can sue…

if someone prints your work, without asking your permission, to use in an article about your work.

if someone copies your illustration “style” even though it isn’t a copy of one of your images.

if someone sells copies of an image that you drew and claims it's their work.

if someone uses a photo of you, WITH your written permission, for an advertisement.

19. What is TRUE about ‘Work for Hire’?

It is legal in Canada, but that term is not used to describe it in Canada.

The term can only legally apply to employees of a company, never freelancers.

It applies to Trademark Law, not Copyright Law.

It is illegal in Canada.

20. The thing(s) you wish to KEEP in an editorial publication contract are:

Residual rights & authorship.

Ownership.

Moral rights & derivative rights.

Moral rights, derivative rights, residual rights and authorship.