A credit balance in a federal income tax payable account means the amount:
A.
Was overwithheld
B.
Was underwithheld
C.
Has not yet been paid
D.
Needs to be reclassified to the payroll expense account
The Answer Is:
C
This question includes an explanation.
Explanation:
Comprehensive and Detailed In-Depth Explanation:
Acredit balancein thetax payableaccount indicates the company has withheld taxes buthas not yet remitted them to the government, hence showing as a liability.
[References:, The Payroll Source, Chapter 4: Payroll Accounting, ]
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