The Income Statement and Balance Sheet Columns of Iron and Wine

question 49

Multiple Choice

The income statement and balance sheet columns of Iron and Wine Company's worksheet reflect the following totals: To enter the net income (or loss) for the period into the above worksheet requires an entry to the

• A)income statement debit column and the balance sheet credit column.
• B)income statement credit column and the balance sheet debit column.
• C)income statement debit column and the income statement credit column.
• D)balance sheet debit column and the balance sheet credit column.

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Definitions:

Social Security Tax

A payroll tax collected by governments to fund social security programs, typically a percentage of an employee's salary.

Medicare Tax

Medicare Tax is a federal payroll tax used to fund the Medicare program, which provides health insurance for eligible elderly and disabled individuals.

Social Security Tax

Social Security Tax is a tax levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Medicare Tax

A federal tax deducted from an individual’s earnings to fund the Medicare program, typically as part of payroll taxes.