When Recording the Deposit of FUTA Taxes Owed, the Proper

question 11

Multiple Choice

When recording the deposit of FUTA taxes owed, the proper entry is:

• A) FUTA Tax Expense      Cash
• B) Payroll Taxes      Cash
• C) Payroll Taxes      FUTA Taxes Payable
• D) FUTA Taxes Payable      Cash
• E) FUTA Tax Expense      FUTA Taxes Payable

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Definitions:

Actively Traded

This describes securities or assets that have high trading volumes and liquidity in financial markets.

Realized Gain

The profit earned from the sale of an asset when the sale price exceeds the purchase price, which has become actual rather than just theoretical.

Fair Market Values

The estimated price at which a property or asset would trade in a competitive auction setting.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.