Which of the following is correct?
a) Social Security tax is employer-paid only.
b) Income taxes withheld from employees' paychecks are liabilities of the employer.
c) Vacation benefits should be recognized as expenses when employees take a vacation.
d) If a company receives a deposit from a customer as a guarantee to return a rental truck in 30 days, the company would recognize accounts payable.
Compensation expenses are the expenses which are given by the employer for example salaries etc, they are the part of the operating expenses of the company and have their impact on the profits of the company.
Answer and Explanation:
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fromChapter 7 / Lesson 23
What is compensation? Understand the meaning of employee compensation in human resource management. Learn how the companies make employee compensation policy.