A form 1099 with no withholdings, where withholdings should exist, may be a fraud symptom for which liability account?
A) Accounts payable
B) Unearned revenues
C) Contingent liabilities
D) Accrued liabilities

Question

Quizplus · Accepted Answer

A form 1099 with no withholdings may signify that proper taxes were not withheld by the payer, resulting in accrued tax liabilities for the recipient. Therefore, the liability account involved would be accrued liabilities.

A Form 1099 with No Withholdings, Where Withholdings Should Exist