Which of the Following Deposit Requirements Pertains to a Monthly

question 92

Multiple Choice

Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October?

• A) No deposit is required.
• B) The undeposited taxes should be carried over to the end of November.
• C) The taxes must be deposited on or before November 15.
• D) The taxes must be deposited on or before the next banking day.
• E) None of the above.

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Definitions:

Accumulate Interest

The process by which earned interest is added to the principal, allowing future interest calculations to be based on the increased balance.

Constant Amount

A fixed sum that does not change over a specified period.

Compounded Monthly

A method of calculating the growth of an investment where the interest earned is added to the principal so that the balance doesn't merely grow, it grows at an increasing rate.

Obligation

A duty or commitment to fulfill a requirement, such as repayment of a debt or adherence to a contract.