In the Case of Unearned Revenue, the Cash Is Received

question 121

True/False

In the case of unearned revenue, the cash is received first, and the revenue is earned later.

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Definitions:

State Unemployment Tax

A tax imposed on employers by the state government to fund unemployment benefits for workers who have lost their jobs.

FICA Taxes Payable

Amounts due for Social Security and Medicare taxes, required to be withheld from employees' paychecks and matched by employers.

Payroll Tax Expense

Taxes that employers are required to pay based on the salary and wages paid to employees, including social security and Medicare taxes in the United States.

SUTA Payable

A liability account in the general ledger that records amounts owed to the state unemployment insurance program, to be paid by employers.