How should the amount of federal income tax that is withheld from employees' paychecks by the employer be recorded?
A) On the employer's books as a current liability.
B) On the employer's books as an asset.
C) On the employer's books as revenue.
D) It should not be recorded on the employer's books.

Question

Quizplus · Accepted Answer

Federal income tax withheld from employees' paychecks is recorded on the employer's books as a current liability because it represents an amount the employer owes to the government.

How Should the Amount of Federal Income Tax That Is