Match Each of the Following Items with the Appropriate Definitions

question 135

Multiple Choice

Match each of the following items with the appropriate definitions.
-A method of computing and reporting that involves adjusting the net income amount by adding and subtracting items that are necessary to yield net cash provided (used) by operating activities.

• A)Indirect method
• B)Direct method
• C)Statement of cash flows
• D)Financing activities
• E)Operating activities
• F)Investing activities

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Definitions:

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides healthcare benefits to retirees.

State Income Taxes

Taxes imposed by individual states on the income generated by businesses and individuals within that state.

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.

Withheld FICA Taxes

Taxes deducted from employees' paychecks to fund Social Security and Medicare, which employers also match.