The Income Statement Is Completed After the Statement of Owners

question 98

True/False

The income statement is completed after the statement of owners equity.

---

Definitions:

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been removed.

FICA Tax

The Federal Insurance Contributions Act (FICA) tax is a payroll tax in the United States that is required from both employers and employees to support Social Security and Medicare programs.

Federal Income Tax

A tax levied by the federal government on an individual's or corporation's annual income.

Withholding Allowance

A provision allowing employees to reduce the amount of income tax withheld from their paycheck, based on their personal allowances and deductions.