QUESTION 4

a. According to GAAP, only some but not all contingent liabilities need to be recorded. (True/False)

b. Auditing accruals and deferrals would involve an examination of receivable, payable, unearned income, and prepaid expense accounts. (True/False)

c. Payroll taxes include federal and state income tax withheld from gross pay. (True/False)

d. Not every adjusting entry affects net income. (True/False)

e. The IRS requires employers to withhold payroll taxes from employees' gross pay. (True/False)