Option c. A current liability is a correct answer. The amount of federal income taxes withheld from an employee's gross pay is recorded as a current liability
Under employment law, employers operate as intermediaries between employees and state and federal agencies. It is the obligation of employers to track and pay taxes, social security, and other payments from employee pay to government agencies.
The company must remit the amount withheld each quarter which means the amounts are owed in the current period. When taxes are paid, the FIT Payable account is debited to balance the transactions.
Option a) is incorrect as no asset is created by the withholding.
Option b) is incorrect as the taxes are not an expense paid by the company.
Option d) is incorrect as the payable operates as a normal liability account.
Learn more about income tax:
brainly.com/question/17075354
#SPJ4
Answer:
The correct answer is option D.
Explanation:
As the price of product increases the consumers will demand less because they now have to pay more than earlier.
The supply however is directly related to price level and will increase with the increase in price. The producers will produce more in order to enjoy higher revenue and profit.
This would encourage the other potential firms to enter the market, to earn higher profits.So more suppliers will enter the market.
However, this would lead to increase in supply of output. The excess supply will cause the price to fall eliminating higher profits.
