The Employer Records the Amount of Federal Income Tax Withheld

question 59

Multiple Choice

The employer records the amount of federal income tax withheld as:

• A)a liability.
• B)an expense.
• C)an asset.
• D)a payroll tax expense.

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Definitions:

Safety Inventory

Inventory kept as a buffer against forecasted demand and supply variability to prevent stockouts.

Forecasted Demand

The estimated amount of product or service that will be bought by customers in a future period, often used for planning in business operations.

Postponement

A supply chain strategy that delays the final production or distribution of a product until customer orders are received to minimize inventory and forecast error costs.

Product Differentiation

The method of making a product or service stand out from competitors in the marketplace to appeal more effectively to a specific target audience.