Multiple Choice Questions 1. Which of the following accounts (items) would not be affected when an...

Multiple Choice Questions

1. Which of the following accounts (items) would not be affected when an employer records a wage expense?

A.	Social Security Taxes Payable (on behalf of employee)
B.	Federal Unemployment Taxes Payable
C.	State & Federal income-tax withholdings on behalf of the employees
D.	Medicare Taxes Payable (on behalf of employee)

2. Which of the following would be an example of an investing cash flow?

A. Cash received from the sale of stock
B. Cash paid to suppliers
C. Cash received from customers
D. Cash received for the sale of equipment

Expert Solution

1.

C.	State & Federal income-tax withholdings on behalf of the employees

This is because these taxea are directly deposited to the tax authorities without creating any account for it.

2.

D. Cash received for the sale of equipment

Sale of any type of fixed assets is recorded in Investing Activities

ekkarill92 answered 2 years ago

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