Which of the Following Is an Example of a Payroll

question 58

Multiple Choice

Which of the following is an example of a payroll tax?

• A)a tax on the wages that a firm pays its workers
• B)a "sin" tax on distilled alcohol
• C)a tax on corporate profits
• D)the portion of federal income taxes earmarked to pay for national defense

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Definitions:

Amortization Expense

The gradual write-off of the cost of an intangible asset over its useful life.

Equity-Method

An accounting technique used to record investments in affiliate companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profits or losses.

Operating Activities

Activities that relate directly to the operation of a business, including sales revenue and expenses, reflected in the cash flow statement.

Decrease in Inventory

A reduction in the amount of goods available for sale or use, often reflected in financial statements and can indicate sales performance or a strategy to lower inventory levels.