Which of the Following Is a Payroll Tax

question 109

Multiple Choice

Which of the following is a payroll tax?

• A)The Social Security tax.
• B)A sales tax.
• C)The federal income tax.

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Definitions:

Principle of Conservatism

An accounting guideline where revenue and assets are not overestimated while liabilities and expenses are not underestimated.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Normal Profit Margin

The average or expected profit margin that a business aims to achieve under normal operating conditions.

Allowance Method

An accounting technique used to account for expected credit losses on accounts receivable by anticipating uncollectible accounts.