All of the Following Statements About the Financing of Unemployment

question 31

Multiple Choice

All of the following statements about the financing of unemployment insurance benefits are true EXCEPT

• A)All contributions from a state are deposited in the state's account in a federal trust fund from which benefits are paid.
• B)The tax rate for a given employer may be reduced if the employer has a favorable employment record.
• C)Part of an employer's contribution is used for administrative expenses,to fund extended benefits,and to maintain a loan fund that can be draw upon if the state's account is depleted..
• D)Most state programs are financed primarily by payroll taxes paid by employees.

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Definitions:

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership's value in the firm.

Treasury Stock

Treasury stock refers to shares which were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Cash Dividends

Payments made by a corporation to its shareholders, typically from profits, in the form of cash.

Retained Earnings

The portion of a company's profits that is kept or retained within the company, rather than being paid out as dividends to shareholders.