Which of the Following Accounting Terms Assumes That a Business's

question 197

Multiple Choice

Which of the following accounting terms assumes that a business's activities can be divided into small segments and that financial statements can be prepared for specific periods,such as a month,quarter,or year?

• A) adjusting entry concept
• B) economic entity concept
• C) matching principle
• D) time period concept

---

Definitions:

State Unemployment Taxes

Taxes imposed by state governments on businesses based on the amount of wages paid to employees, used to fund unemployment compensation programs.

Employer Payroll Tax Rates

The percentage rates at which employers are required to tax their employees' wages for federal and state payroll taxes.

FICA Social Security Taxes

Taxes paid by both employers and employees to fund the Social Security program, determined as a percentage of payroll.

FICA Medicare Taxes

These are taxes collected from both employers and employees in the United States to fund the Medicare program, which provides healthcare benefits for qualified individuals.