The following totals for the month of April were taken from the payroll records of Metz Company. $$\begin{array} { l r }
\text { Salaries } & \$ 90,000 \
\text { FlCA taxes withheld } & 6,885 \
\text { Income taxes withheld } & 19,800 \
\text { Medical insurance deductions } & 3,600 \
\text { Federal unemployment taxes } & 720 \
\text { State unemployment taxes } & 4,500
\end{array}$$ The accrual of federal unemployment tax would include a(n)

Question

The following totals for the month of April were taken from the payroll records of Metz Company. $$\begin{array} { l r } 
\text { Salaries } & \$ 90,000 \
\text { FlCA taxes withheld } & 6,885 \
\text { Income taxes withheld } & 19,800 \
\text { Medical insurance deductions } & 3,600 \
\text { Federal unemployment taxes } & 720 \
\text { State unemployment taxes } & 4,500
\end{array}$$ The accrual of federal unemployment tax would include a(n)

Quizplus · Accepted Answer

Federal unemployment tax is an expense and a liability. The accrual of federal unemployment tax would increase the expense and the liability.

The Following Totals for the Month of April Were Taken