Employers Have an Option of Whether or Not to Match

question 50

True/False

Employers have an option of whether or not to match an employee's Social Security and Medicare taxes.

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Definitions:

Accounting Recognition

This refers to the process of recording financial transactions in the financial statements according to accepted accounting principles.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Direct Method

A way to present the cash flow statement where actual cash flows from operating activities are listed directly.

Net Cash Flows

The difference between cash inflows and outflows in a company over a specific period, indicating the net change in cash and cash equivalents.