IAB Study Guide 2026

When a safety hazard is identified, the immediate priority is to secure the area to prevent injury and report the hazard through proper channels. Delaying action increases the risk of incidents.

Income tax is a direct tax levied on the income or profits of individuals and businesses, meaning the burden falls directly on the earner. Value-added tax (VAT), on the other hand, is an indirect tax applied to the value added at each stage of production and distribution of goods and services, ultimately borne by the final consumer through the price of the product.

Form W-4 (Employee's Withholding Certificate) is completed by employees to tell employers how much federal income tax to withhold from their paychecks.

Organized, dated, and signed records demonstrate systematic compliance with regulatory requirements. Proper documentation serves as evidence during audits, protects against liability, and shows a pattern of consistent adherence to standards.

Form 941 (Employer's Quarterly Federal Tax Return) is filed quarterly to report wages paid, federal income tax withheld, and Social Security/Medicare taxes.

The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It presents a detailed summary of the company's assets (what it owns), liabilities (what it owes), and owner's equity (the residual value after liabilities are subtracted from assets). This statement adheres to the fundamental accounting equation: Assets = Liabilities + Equity, offering a comprehensive view of financial health.