SIC Is Used to Classify Companies into Industries

question 12

True/False

SIC is used to classify companies into industries.

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Definitions:

Tax Liability Accounts

Tax liability accounts are financial accounts used to record the amounts owed by an individual or an entity to the tax authorities, representing future tax payments.

Payroll Tax Expense Accounts

Accounts that track the taxes a business incurs related to its employees' salaries, including social security, Medicare, and federal and state income taxes.

Financial Statements

Comprehensive reports on a company's financial performance, condition, and cash flow, including the balance sheet, income statement, and statement of cash flows.

Federal Taxes

Taxes imposed by the government on income, property, sales, and other activities, used to fund public services and operations.