State the Accounting Term That Applies to Each of the Following

question 40

Essay

State the accounting term that applies to each of the following definitions.
$$\begin{array} { | l | l | } \hline \text { Definition } & \text { Accounting Term } \\\hline \text { Businesses should use the same } & \\\text { accounting methods from period to } & \\\text { period. } & \\\hline \text { Treats the oldest inventory purchases } & \\\text { as the first units sold. } & \\\hline \text { Principle whose foundation is to } & \\\text { exercise caution in reporting financial } & \\\text { information. } & \\\hline \text { Treats the most recent/newest } & \\\text { purchases as cost of goods sold. } & \\\hline\end{array}$$

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Definitions:

FUTA Payable

A federal tax liability owed by employers to fund the unemployment benefits system.

FICA-OASDI

Represents the Federal Insurance Contributions Act's Old-Age, Survivors, and Disability Insurance, a U.S. payroll tax that funds Social Security.

FICA-Medicare

The portion of the Federal Insurance Contributions Act tax that is allocated to Medicare, funding hospital insurance benefits for individuals who are elderly or disabled.

Payroll Register

A document that records detailed information about the compensation paid to employees, including wages, deductions, and net pay.