The Account That Should Be Credited for the Total Income

question 82

Multiple Choice

The account that should be credited for the total income tax withheld from employee's earnings is

• A) FICA Tax Payable.
• B) FICA Tax Expense.
• C) Employee Income Tax Payable.
• D) Employee Income Tax Expense.

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Definitions:

Annual Payments

Regular payments made once a year, often associated with loans, annuities, or insurance policies.

Carrying Amount

The book value of an asset or liability on a company’s balance sheet, considering factors like depreciation or amortization.

Quick Ratio

A liquidity metric that measures a company's ability to cover its short-term obligations with its most liquid assets excluding inventory.

Contingent Liability

A potential financial obligation that depends on a future event occurring or not occurring.