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:

Retained Earnings

The accumulated net income of a company that is retained and not distributed to shareholders as dividends.

Net Loss

The result when a company's expenses exceed its revenues during a specific period, indicating negative profitability.

Cash Dividends

Payments made by a corporation to its shareholder members. It represents the share of earnings distributed.

Stock Dividends

A payment to shareholders in the form of additional shares of stock rather than cash.