To Record the Payment of SUTA Tax,the Accountant Would

question 69

Multiple Choice

To record the payment of SUTA tax,the accountant would

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

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Definitions:

Fixed Expenses

Costs that do not fluctuate with the level of production or sales within a certain range, such as rent or salaries.

Absorption Costing

A costing technique that encompasses the total expenses of production, including direct materials, labor, and all overhead costs, both variable and fixed, in a product's cost.

Single Product

A business or manufacturing approach where only one type of product is produced rather than multiple products.

Absorption Costing

An accounting method that includes all direct costs and overhead in the cost of a product.