What Was a Characteristic of the Ad Hoc Period of Setting

question 22

Multiple Choice

What was a characteristic of the ad hoc period of setting accounting policies?

• A) This period lasted approximately 30 years
• B) Choices were largely political
• C) Standards were issued and revised based on consistency
• D) It began in 2002

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax; a U.S. federal payroll tax that funds Social Security and Medicare.

Medicare Tax

A federal payroll tax that funds Medicare, the health insurance program for individuals aged 65 and over, as well as for some younger people with disability status as determined by the Social Security Administration.

Payroll Period

The interval of time for which an employee's wages are calculated, such as weekly, bi-weekly, or monthly.

Salaries Payable

An account that represents the amounts owed but not yet paid to employees for services rendered.