Which of the Following Statements Is Not Correct

question 13

Multiple Choice

Which of the following statements is not correct?

• A) The amount of social security tax withheld depends on an employee's gross earnings,marital status,and number of withholding allowances.
• B) Federal law requires that social security,Medicare,and federal income taxes be deducted from the gross pay of most employees.
• C) Medicare taxes are levied in an equal amount on both employers and employees.
• D) Once an employee's year-to-date wages reach a certain amount prescribed by law,social security tax is no longer withheld.

Comprehend the procedures for closing accounts at the end of an accounting period.

Understand the implications of sales discounts and sales returns on a company's financial statements.

Recognize the importance of accurately maintaining and reporting inventory in financial statements.

Understand the basic principles of revenue management and pricing elasticity.

---

Definitions:

Nonmandated Benefits

Refers to the voluntary provision of benefits by employers, such as dental insurance, retirement plans, and paid time off, that are not required by law.

Perquisite

A benefit or privilege granted to an employee in addition to their regular salary or wages, often referred to as a "perk."

Point System

The point system for job evaluation requires managers to quantify, in objective terms, the value of the various elements of specific jobs.

Life-Cycle Benefits

Benefits and support provided by an employer that address different stages of an employee's life, such as childcare, education support, and retirement planning.