XYC Corporation pays its 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

The taxes withheld from employees' paychecks but not yet paid to the IRS represent a liability for XYC Corporation, as they owe this money to the government and it is not yet paid.

XYC Corporation Pays Its Taxes Quarterly but Withholds Payroll Taxes