Which Statement Is Not Correct

question 13

Multiple Choice

Which statement is not correct?

• A)The accrual method focuses on the balance sheet.
• B)The deferral method focuses on the income statement.
• C)The deferral methods matches tax expense to the balance sheet.
• D)The accrual and deferral methods are both tax allocation methods.

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Definitions:

Ceiling Amount

A maximum limit placed on the value, income, or other financial metric that can be used for calculations, such as determining eligibility for tax deductions or credits.

Multi-Part W-3

A comprehensive summary form submitted by employers to the IRS, detailing total earnings, tax withholdings, and other payroll information for employees.

Social Security Portion

The part of income that goes towards Social Security contributions, typically seen on payroll statements.

Annual Wage Base

The maximum amount of earnings on which employees must pay Social Security taxes in a given year.