Question

Payroll taxes paid by employees include which of the following? O Federal income tax, federal unemployment tax, and Medicare O Social security, federal unemployment tax, and state unemployment tax O Social security, federal income tax, and federal unemployment tax O Federal income tax withheld, state income tax withheld, and Medicare

Answer 1

Question: 1

Solution: Payroll taxes liable to be paid by employees are Social security tax, federal income tax, federal unemployment tax. Thus, option C. is the correct choice.

Question: 2.

Solution: Option D. This statement is not correct since, Notes payable can also be classified as current liability account if payment towards it is payable within one year. Rest three statements are correct.

Question 3.

Solution: Option B. is the correct choice since, the funds raised through the issuance of equity shares are not liable to be redeemed (i.e. Equity stock does not have any maturity period). Hence, equity financing does not require repayment. Rest statements are incorrect.

Question 4.

Solution: Option D. is the correct choice. Since, mere promise or a verbal commitment is not a recordable transaction. The liability for the amount owed to suppliers is recorded when the goods or services are received.

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