QUESTION 5

a. If the entry to adjust accounts receivable for cash collected was not made, revenue would be understated. (True/False)

b. Accounting records indicate that the repair shop in the Magna Appliance case followed GAAP. (True/False)

c. For tax purposes, employees claim withholding allowances on a W-4. (True/False)

d. Like payroll taxes, payroll deductions are withheld from employees' gross pay. (True/False)

e. Some payroll deductions, like FICA, are mandatory. (True/False)

f. Like Medicare, Social Security is both a payroll tax and a payroll deduction. (True/False)

g. There is no limit on the amount of gross pay subject to federal and state unemployment insurance tax. (True/False)