Which of the Items Is Not Correct Regarding Withholding

question 26

Multiple Choice

Which of the items is not correct regarding withholding?

• A)Employees that also have self employment income can have additional amounts withheld to avoid estimated tax payments.
• B)Employees cannot claim an allowance for a child unless they are entitled to claim the child as a dependent.
• C)Employees can claim exempt and avoid withholding.
• D)Married employees can choose to be withheld at the higher single rates.Additional allowances can be claimed for many purposes (e.g. ,large itemized deductions) in addition to personal and dependency exemptions.

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Definitions:

Income Statement

A financial report that displays a company's revenues, expenses, and profits over a specific period.

Balance Sheet

A document detailing a firm's assets, debts, and owner's equity at a certain point in time.

Cross-referencing

A method used to provide additional reference or information related to a document, statement, or item by linking it to another source.

Debits and Credits

Accounting terms used to record changes in balances within accounts, where debits increase asset or expense accounts and credits increase liability, equity, or revenue accounts.