A Characteristic of FICA Is That

question 15

Multiple Choice

A characteristic of FICA is that:

• A)It does not apply when one spouse works for the other spouse.
• B)It is imposed only on the employer.
• C)It provides a modest source of income in the event of loss of employment.
• D)It is administered by both state and Federal governments.
• E)None of these.

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Definitions:

Credit Cash

An accounting entry that decreases the cash balance in the company’s books, often as a result of paying out cash for expenses or liabilities.

Accounts Payable

Liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on the accounting equation; assets and expenses normally have a debit balance, while liabilities, equity, and revenue normally have a credit balance.