Use This Information to Answer the Following Question

question 22

Multiple Choice

Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company:

The entry to record the accrual of federal unemployment tax (assume FUTA tax of 0.8 percent) would include a

• A)credit to Federal Unemployment Tax Payable for $64.
• B)debit to Federal Unemployment Tax Payable for $64.
• C)debit to FUTA Tax Expense for $64.
• D)credit to Payroll Taxes and Benefits Expense for $64.

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Definitions:

Verified

Confirmed as true, accurate, or to meet a particular standard.

Predatory Pricing

The strategy of setting prices at a very low level with the intent to eliminate competition, considered illegal in many jurisdictions.

Price Discrimination

The strategy of selling the same product to different customers at different prices based on their willingness to pay.

Resale Price Maintenance

A practice where a manufacturer and its distributors agree on the minimum price at which a product can be sold to consumers.