Regarding Net Pay,which of the Following Statements Is Incorrect

question 45

Multiple Choice

Regarding net pay,which of the following statements is incorrect?

• A) The net pay amount is not important for accounting purposes.
• B) The amount of compensation that the employee actually takes home is net pay.
• C) The employer either writes a paycheck to each employee for his or her net pay or directly deposits the employee's net pay into the employee's bank account.
• D) Net pay equals gross pay minus all deductions.

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Definitions:

Buying a Put

Purchasing a put option, which is a financial contract that gives the buyer the right to sell an asset at a predetermined price within a specified time frame.

Prices Decline

A decrease in the cost of goods and services in an economy over a period.

Call Option

A financial derivative that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a predetermined period.

Purchase

The act of acquiring goods or services in exchange for money or other compensation.