Which of the Following Regarding the Form W-4 Is Incorrect

question 14

Multiple Choice

Which of the following regarding the Form W-4 is incorrect?

• A)It determines an employee's income tax withholding.
• B)Employees can claim dependents.
• C)Employees can specify additional amounts to be withheld each month.
• D)The form can only be adjusted at the beginning of the year or start of employment.

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Definitions:

Dividends Expense

The sum distributed from a portion of a company's earnings to its shareholders; often associated with preference shares.

Common Stock Dividend Distributable

Stockholders’ equity account that accumulates a stock dividend that has been declared but not yet issued and distributed.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.