Art Panache Is the Sole Employee of Panache Sales

question 46

True/False

Art Panache is the sole employee of Panache Sales. His employer pays a portion of his health insurance premium, and also contributes to a retirement plan in his name. The company's share of the health insurance premium is $600, and the company's contribution to the retirement plan is $780. The journal entry in the payroll cycle to record the employee benefits to be paid by the company should include a debit to Employee Health Insurance Payable for $1,380.

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Definitions:

Laxatives

Substances taken to stimulate bowel movements, often used to treat constipation.

Deductive Thinking

A logical process where a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Inductive Thinking

A cognitive process that encompasses deriving broad inferences from particular examples or situations.

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective.