The General Rule for Posting Is That the Controlling Account

question 68

True/False

The general rule for posting is that the controlling account is debited periodically for an amount equal to the sum of the debits to the subsidiary ledger, and is credited periodically for an amount equal to the sum of the credits to the subsidiary ledger.

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Definitions:

SUTA

State Unemployment Tax Act; a tax paid by employers at a state level to fund unemployment benefits for workers who lose their jobs.

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

Wages Expense

The total cost incurred by a company for the payment of wages to employees during a specific period.

FICA Tax Rate

The percentage of income that is taken as tax to fund Social Security and Medicare, paid equally by employees and employers.