Closing Entries Are Recorded

question 22

Multiple Choice

Closing entries are recorded:

• A) in the ledger only.
• B) in the journal only.
• C) in the journal and the ledger.
• D) on the worksheet.

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Definitions:

Tax Liability

The total amount of tax owed to the IRS or other tax authorities after all deductions, credits, and exemptions.

Semiweekly Depositor

A semiweekly depositor is a business that must deposit employment taxes on Wednesdays or Fridays, depending on the day wages are paid, due to the size of its payroll.

FICA Withholding

Refers to the payroll taxes automatically deducted from an employee's paycheck to fund Social Security and Medicare programs.

Two Jobs

A situation where an individual is employed in two different positions at the same time, impacting income and possibly tax calculations.