The Reason That Both Expenses and Dividends Are Recorded by Debit

question 90

Multiple Choice

The reason that both expenses and dividends are recorded by debit entries is that:

• A)All dividend and expense transactions involve offsetting credit entries to the Cash account.
• B)Both expenses and dividends are offset against revenues in the income statement.
• C)Both expenses and dividends reduce owners' equity.
• D)The statement is untrue-expenses are recorded by debits,but dividends are recorded by credits to the owners' equity account.

Recognize the scope of variables in Java (instance, local, global).

Identify and understand method definitions, including void and value-returning methods.

Comprehend preconditions and postconditions in method usage.

Understand the mechanism of parameter passing in Java.

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Definitions:

FICA Payroll Tax

Federal Insurance Contributions Act tax, a U.S. law requiring a deduction from employees' paychecks and employer contributions to fund Social Security and Medicare.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly, disabled, and unemployed.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for some younger people with disabilities.

Employer's Payroll Taxes Expenses

These are taxes paid by the employer based on the wage and salary amounts paid to employees, including social security, Medicare taxes, and unemployment taxes.