Which of the Following Statements Is Not Correct

question 27

Multiple Choice

Which of the following statements is not correct?

• A) The FUTA tax provides benefits for employees who become unemployed.
• B) The federal unemployment tax rate can be reduced by the rate charged by state for the state unemployment tax.
• C) The earnings base for the federal and state unemployment taxes are the same,the first $7,000 of an employee's earnings for the year.
• D) The SUTA tax protects employees against losses from job-related injuries or illnesses.

---

Definitions:

Sales Commissions

The expense related to the payment of commissions to sales personnel, typically calculated as a percentage of the sales revenue they generate.

Expense Recognition

An accounting principle that dictates when the cost of business operations should be recorded in the financial statements.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, resulting in a reduction of cost of goods sold for the seller and a refund or credit for the buyer.