Identify the Statement Below That Is False

question 21

Multiple Choice

Identify the statement below that is false.

• A)If an employer is not required to withhold income taxes from an employee's wages, the wages are not taxable to the employee.
• B)In certain situations, income tax withholding by an employer is voluntary.
• C)An employer must deposit with the government an amount of FICA tax that is more than twice the amount withheld from the employee's salary (i.e., the employee's and employer's shares).
• D)If an excess amount of FICA has been withheld for an employee because the employee has multiple jobs, the employee may claim a credit for the excess amount withheld on his or her income tax return.
• E)None of the above.

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Definitions:

Depreciation Requirements

The set of rules or guidelines dictating how an asset's cost should be allocated over its useful life.

Retained Earnings

Accumulated net income not distributed to shareholders as dividends but retained by the company for reinvestment in its operations or to pay debt.

Mining Tract

A specific piece of land designated for mineral extraction and mining operations.