After Posting the Entries to Record Salary Expenses and Payroll

question 14

True/False

After posting the entries to record salary expenses and payroll expenses, Alpha Company's Employment Insurance Payable account has a $9,000 credit balance. This means that the payroll tax expense of Alpha Company included a $9,000 expense resulting from Employment Insurance.

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Definitions:

Value-Based Pricing

A pricing strategy which sets prices primarily on the perceived value to the customer rather than on the cost of the product or historical prices.

Useful Life

The estimated duration of time that an asset is expected to remain functional and productive for its intended purposes.

Preventive Maintenance

Maintenance activities performed on a scheduled basis to prevent the failure or breakdown of machinery, equipment, or systems.

Selling Price

The amount of money for which a product or service is sold to consumers.