The amount of federal income taxes withheld from an employee's gross pay is recorded as a (n)

A) payroll expense
B) contra account
C) asset
D) liability

Question

The amount of federal income taxes withheld from an employee's gross pay is recorded as a (n)A)  payroll expenseB)  contra accountC)  assetD)  liability

Sierrah Lemons · Accepted Answer

Final Answer : D, Explanation :  The federal income taxes withheld from an employee's gross pay are liabilities because they are amounts that are owed to the federal government on behalf of the employee. The employer is responsible for withholding these taxes from the employee's pay and remitting them to the government, but until they are remitted, they are a liability on the employer's books.

The amount of federal income taxes withheld from an employee's gross pay is recorded as a (n)

A) payroll expense
B) contra account
C) asset
D) liability

Definitions

Learning Objectives

Learning Objectives

Related questions

The amount of federal income taxes withheld from an employee's gross pay is recorded as a (n) A) payroll expenseB) contra accountC) assetD) liability

Definitions

Learning Objectives

Learning Objectives

Related questions

The amount of federal income taxes withheld from an employee's gross pay is recorded as a (n)

A) payroll expense
B) contra account
C) asset
D) liability