Which of the following statements is correct?
A)Social Security tax is paid only by the employer.
B)The pay period always ends in conjunction with the company's fiscal year-end.
C)Employee benefits such as vacation time and sick days should be recognized when the employees earn the benefit and not when they take the days off from work.
D)Unemployment taxes are paid by the employee only.

Question

Quizplus · Accepted Answer

Employee benefits such as vacation time and sick days should be recognized when the employees earn the benefit and not when they take the days off from work. This is known as accrual accounting, where expenses are recognized when they are incurred or earned and not when they are paid. The other options are incorrect as social security tax is paid by both the employer and the employee, the pay period can end at any time as determined by the company, and unemployment taxes are paid only by the employer.

Which of the Following Statements Is Correct