Which of the Following Accounts Is an Expense Account in Which

question 54

Multiple Choice

Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes?

• A) Wages Expense
• B) Payroll Taxes
• C) SUTA Taxes Payable
• D) Salaries Payable
• E) None of the above

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Definitions:

Principal

The original sum of money borrowed in a loan, or the initial amount of investment, excluding any interest or dividends.

Maturity Value

The amount that will be received at the maturity date of an investment, including the principal and any accrued interest.

Future Value

The value of an asset or cash at a specified date in the future calculated based on assumed rate of growth or interest.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.