Exhibit 6-3 Unemployment Categories

question 43

Multiple Choice

Exhibit 6-3 Unemployment categories

According to data in Exhibit 6-3 and assuming the total number of workers is 8,400, the unemployment rate is:

• A) 5 percent.
• B) 15 percent.
• C) 16 percent.
• D) 24 percent.

---

Definitions:

FICA

Refers to the Federal Insurance Contributions Act taxes, which are payroll taxes paid by both employees and employers to fund Social Security and Medicare.

Overtime Earnings

Compensation received for hours worked in excess of the standard workweek hours, often calculated at a rate higher than the regular hourly rate.

Liability Accounts

Accounts on a balance sheet that represent what a company owes to others, such as loans, accounts payable, mortgages, deferred revenues, and accrued expenses.

Expense Accounts

These accounts are used in accounting to track the consumption of assets or services that contribute to the operation and revenue generation of the business.