To Record the Deposit of FUTA Tax,the Accountant Would

question 16

Multiple Choice

To record the deposit of FUTA tax,the accountant would

• A) debit Payroll Taxes Expense and credit Federal Unemployment Tax Payable.
• B) debit Payroll Taxes Expense and credit Cash.
• C) debit Federal Unemployment Tax Payable and credit Cash.
• D) debit Social Security Taxes Payable and credit Cash.

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Definitions:

FDIC

The Federal Deposit Insurance Corporation (FDIC) is a United States government agency created in 1933 to insure deposits in banks and thrift institutions for at least $250,000 per depositor, per insured bank, for each account ownership category.

Deposit Insurance

A guarantee provided typically by a government agency to protect depositor's funds up to a certain amount in the event of a bank failure.

Banking Crisis

A situation in which a large part of the banking sector becomes insolvent, leading to a loss of confidence and potentially a run on banks.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits in banks and thrift institutions to maintain public confidence and encourage stability in the financial system.