Art Parrish,the Sole Employee of Parrish Sales,has Gross Salary for March

question 144

Multiple Choice

Art Parrish,the sole employee of Parrish Sales,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $106,800,and thus subject to FICA.His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA.The fourth journal entry in the payroll cycle to record the employer's payroll taxes should include which of the following?

• A) Debit to Payroll tax expense
• B) Debit to FICA tax payable
• C) Credit to Payroll tax expense
• D) Credit to Cash

Comprehend the significance of tolerance zones in profile tolerancing.

Identify the use cases for profile-of-a-line versus profile-of-a-surface tolerancing.

Understand the fundamental concepts of actual authority and how it enables agents to bind principals in contracts.

Grasp the principle of estoppel and its impact on the liability of principals based on the reasonable beliefs of third parties.

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Definitions:

Cash Dividend

A distribution of earnings made by a company to its stockholders, often in the form of profits.

Stock Split

A corporate action that increases the number of shares by dividing each share, which typically reduces the price per share.

Retained Earnings

The portion of a company's profits that are kept or retained and not paid out as dividends to shareholders, often used for reinvestment in the business.

Legal Capital Approach

Method of preparing Paid-In Capital by listing the legal section first.