Which of the Following Statements Is False

question 101

Multiple Choice

Which of the following statements is false?

• A) Payroll Tax Expense is an expense account.
• B) FICA-OASDI Payable increases on the credit side of the account.
• C) Payroll Tax Expense increases on the debit side of the account.
• D) FUTA Tax Payable increases on the debit side of the account.

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Definitions:

Income Ratios

A set of financial metrics that compare a company's income to other aspects of its financial performance or condition.

Liquidation

The process of winding up a company's operations and distributing its assets to claimants, often during insolvency.

Noncash Assets

Resources that cannot be quickly turned into cash or are non-liquid, like land, machinery, and intellectual property rights.

Income Sharing

An arrangement where profits or revenues are distributed among stakeholders, partners, or employees, based on a predefined formula.