Question

1

An increase in prepaid insurance indicates that

a	insurance expense for the period exceeded insurance paid

b	insurance expense and insurance paid were equal

c	no insurance expense was recorded during the period

d	insurance paid during the period exceeded insurance expense

2

Which of the following payroll-related items is paid only by the employee?

a	State unemployment tax

b	Federal unemployment tax

c	Union dues

d

FICA tax

Answer 1

1. Prepaid insurance indicates that the payment of insurance is more than the expense. Thus, the correct option is D.

2. Union dues are paid only by employee. State unemployment tax and federal unemployment tax are paid only by employer. FICA taxes are paid both by employer and employee.

Thus, correct option is C.