Which of the Following Statements Is False Relating to Payroll

question 12

Multiple Choice

Which of the following statements is false relating to payroll taxes?

• A)When recording the payroll entry,the credit to wages payable is usually more than the debit to wages expense.
• B)CPP is a "matching" tax with the employer.
• C)Income taxes withheld from employees' paychecks are liabilities of the employer.
• D)When the salaries expense entry is recorded,the credit to cash will be for less than the debit to salaries expense.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Balance Sheet

is a financial statement that provides a snapshot of a company's financial condition at a specific time, detailing assets, liabilities, and owners' equity.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership's stake.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.