All of the Following Statements Regarding FICA Taxes Are True

question 122

Multiple Choice

All of the following statements regarding FICA taxes are True except:

• A) FICA taxes are deducted from the employee.
• B) Employers must pay withheld FICA taxes to the IRS.
• C) The amount of FICA deducted from the employee is credited to a liability account.
• D) A self-employed person is exempt from FICA taxes.
• E) An employer must pay FICA taxes equal to the amount withheld from the employee.

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Definitions:

Net Operating Income

Income from a company's operations, excluding taxes and interest, reflecting the profitability of the core business activities.

Unit Product Cost

The total cost associated with producing one unit of a product, including direct materials, labor, and allocated overhead.

Unit Product Cost

The total cost to produce one unit of a product, comprising both direct costs like materials and labor, and allocated indirect costs.

Variable Costing

A bookkeeping procedure that adds only variable production fees (including direct materials, direct labor, and variable manufacturing overhead) into the costs associated with products.