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

question 3

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 $110,100, and thus subject to FICA. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. Which of the following is a part of journal entry in the payroll cycle to record the employer's payroll taxes?

• A)debit to Payroll Tax Expense
• B)debit to FICA Tax Payable
• C)credit to Payroll Tax Expense
• D)debit to Cash

Appreciate the importance of petty cash funds in cash management.

Understand the concept and treatment of cash equivalents in financial statements.

Explain the implications of Sarbanes-Oxley Act on internal controls and financial reporting.

Identify factors influencing a business's control environment.

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Definitions:

Extend Credit

The act of allowing a customer to purchase goods or services now and pay for them later, under agreed terms and conditions.

Resale

The act of selling again, especially selling a purchased item to another buyer.

Adjustment Messages

Communications intended to address and rectify a mistake or misunderstanding.

Revise

To review, alter, and amend content or documents with the intention of making corrections or improvements.