Which of the following statement is true?

Question

Quizplus · Accepted Answer

FICA Medicare Payable is a liability account that increases with a credit when payroll taxes are withheld from employees' paychecks for Medicare.

Option A is incorrect because Payroll Tax Expense increases with a debit, as it represents the employer's share of payroll taxes.

Option C is incorrect because Federal Income Tax Withholding Payable is a liability account that increases with a debit when federal income taxes are withheld from employees' paychecks.

Option D is incorrect because Employee Payroll Taxes withheld are recorded in liability accounts, such as FICA Medicare Payable and Federal Income Tax Withholding Payable, not in the Payroll Tax Expense account.

Which of the Following Statement Is True