Which of the Following Statements Is True

question 25

Multiple Choice

Which of the following statements is true?

• A) SUTA and FUTA Tax Rates are always the same
• B) Payroll Tax Expense involves Federal Income Tax Withholding.
• C) The FUTA wage taxable limit is $7,000
• D) Withholding Federal Income Taxes is optional for the employer

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Definitions:

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

NSF Check

A check that has been declined by a bank due to insufficient funds in the account it was drawn on.

Adjusted Cash Balance

The cash amount reflected in the accounting records after adjustments for items like outstanding checks and deposits-in-transit.

Deposits In Transit

Funds that have been sent to a bank but not yet recorded by the bank in the account holder's bank statement.