Which of the Following Statements Is Correct

question 76

Multiple Choice

Which of the following statements is correct?

• A)Social Security tax is paid only by the employer.
• B)The pay period always ends in conjunction with the company's fiscal year-end.
• C)Employee benefits such as vacation time and sick days should be recognized when the employees earn the benefit and not when they take the days off from work.
• D)Unemployment taxes are paid by both the employer and the employee.

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Definitions:

Redeemable

Refers to an item or financial instrument that can be converted into cash or another financial instrument.

Bond Indenture

The contract between a corporation issuing bonds and the bondholders.

Amortization

The process of gradually writing off the initial cost of an intangible asset over a fixed period of time in a manner similar to depreciation of physical assets.

Bond Premiums

The amount by which the selling price of a bond exceeds its face value.