Unearned Revenues Are Assets Treated as Liabilities,as These Are Received

question 30

True/False

Unearned revenues are assets treated as liabilities,as these are received by a business for services to be performed at a future date.

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Definitions:

FICA Taxes

Taxes imposed by the Federal Insurance Contributions Act, funding Social Security and Medicare programs, withheld from employees’ pay and matched by employers.

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides healthcare benefits to retirees.

State Income Taxes

Taxes imposed by individual states on the income generated by businesses and individuals within that state.

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.