A Transaction Recording Accrued Income Will

question 48

Multiple Choice

A transaction recording accrued income will:

• A) have no effect on total assets.
• B) increase cash and decrease sales income.
• C) increase accounts receivable and sales income.
• D) increase accounts receivable and accounts payable.

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Definitions:

OASDI

An acronym for Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retired people, the disabled, and survivors of deceased workers.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger people with disabilities.

FUTA

FUTA (Federal Unemployment Tax Act) is a United States federal law that imposes a payroll tax on any business with employees, the funds are used to pay unemployment benefits.

SUTA

State Unemployment Tax Act, referring to state-level taxes that employers must pay towards state unemployment insurance programs.