The Following Totals for the Month of June Were Taken

question 167

Multiple Choice

The following totals for the month of June were taken from the payroll register of Young Company: The entry to record the accrual of employer's payroll taxes would include a

• A) debit to Payroll Taxes Expense for $2,498
• B) debit to Social Security and Medicare Tax Payable for $2,250
• C) debit to Payroll Taxes Expense for $1,373
• D) Debit to Payroll Tax Expense for $1,125

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Definitions:

Elastic Supply

A situation where the quantity supplied of a good or service changes significantly when its price changes.

Normal Good

A good that has a positive income elasticity, so that as consumer income rises, demand for the good rises, too.

Market Supply

The total quantity of a good or service that sellers are willing and able to sell at a given price over a specific period.

Elasticity

Elasticity refers to the measure of how much the quantity demanded or supplied of a good changes in response to a change in price.