The Following Entities Issue Bonds to Engage in Long-Term Borrowing

question 47

Multiple Choice

The following entities issue bonds to engage in long-term borrowing EXCEPT:

• A)the federal government.
• B)state and local governments.
• C)corporations.
• D)individuals.

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Definitions:

Accountable Plan

This is an IRS-recognized plan that allows businesses to reimburse employees for work-related expenses tax-free, provided certain conditions are met, such as business connection and adequate accounting.

Taxable Fringe Benefits

Benefits provided by an employer to an employee, which are considered taxable income for the employee, such as personal use of a company car.

FUTA Tax

Federal Unemployment Tax Act tax, a payroll tax paid by employers to fund state workforce agencies and unemployment insurance for workers who have lost their jobs.

State Unemployment Taxes

Taxes imposed by state governments on businesses based on the amount of wages paid to employees, used to fund unemployment compensation benefits for workers who have lost their jobs.