G Was Injured When an Elevator at His Place of Work

question 62

Multiple Choice

G was injured when an elevator at his place of work fell three floors, permanently losing the use of his left hand.As a result, he received disability income of $700 per month for six months during the current year.G's employer paid 60 percent of the annual premium on the disability policy, and G paid the remainder.The amount included in G's gross income is

• A)$0
• B)$2,520
• C)$4,200
• D)$1,680

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Definitions:

Salaries Expense

This refers to the total amount paid by a company for employee salaries over a specific period, recorded on the income statement.

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, used to verify the equality of the two totals.

Cash Dividend

A payment made by a company to its shareholders, typically in the form of cash, out of its profits or reserves.

Journalize

The process of recording transactions in a journal, marking the first step in the accounting cycle.