Art Panache, the Sole Employee of Panache Sales, Has Gross

question 6

True/False

Art Panache, the sole employee of Panache Sales, has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry in the payroll cycle to record the employer's payroll tax expense includes a credit to FICA-OASDI Taxes Payable for $310. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)

Understand the importance and application of adjusting entries in financial accounting.

Recognize the key accounting assumptions and how they affect financial reporting.

Identify the characteristics and implications of different types of accounting periods.

Comprehend the principles guiding revenue and expense recognition.

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Definitions:

Universal Grammar

In Chomsky’s theory, rules that apply to all human languages.

Language Acquisition Device

A theoretical construct proposed by linguist Noam Chomsky to explain the innate ability of humans to acquire language.

Canonical Babbling

A stage in child language acquisition where infants begin to produce repetitive syllables, such as "ba ba ba" or "da da da," which is a fundamental step in the development of speech and language.

Underextension

A linguistic phenomenon in child language acquisition where a word is used more narrowly than it is in adult language, applying it to fewer examples.