XYC Corporation pays its income taxes quarterly but withholds payroll taxes from its employees' paychecks each week. Until the taxes are actually paid to the IRS, they appear on the balance sheet as

Question

Quizplus · Accepted Answer

Income taxes and payroll taxes withheld from employees' paychecks are considered liabilities until they are paid to the IRS. Therefore, the correct answer is C) a liability.

XYC Corporation Pays Its Income Taxes Quarterly but Withholds Payroll