Federal income tax that is withheld each pay period from the employee's earnings is NOT based on the
a. total earnings of the employee.
b. marital status of the employee.
c. number of withholding allowances claimed by the employee.
d. number of sick days.
Question 2
Which statement best describes the proper accounting treatment for long-term assets classified as property, plant, and equipment?
A) Record them as assets and then depreciate them over an estimated useful life.
B) Record them as expenses when purchased using the cost principle.
C) Record them as assets and adjust them to market value each accounting period using the straight-line method.
D) Record them as revenues and expenses using the matching principle.
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