Which of the Following Is Always True About Tipped Employees

question 22

Multiple Choice

Which of the following is always true about tipped employees?

• A)The minimum wage for tipped employees is consistent among all states.
• B)They only earn occasional tips from other employees.
• C)They must earn more than 50% of their income from tips.
• D)They have the opportunity to earn tips from patrons as a regular part of their job.

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Definitions:

Goodwill

An intangible asset that represents the premium paid over the fair value of the net identifiable assets of a company during an acquisition.

Initial Value Method

An accounting method used to record investments at their acquisition cost.

Noncontrolling Interest

A minority stake in a company that is not large enough to exercise control over its operations or policies.

Net Income

Profit calculated as total revenues minus total expenses, interest, and taxes, representing how much the company earned or lost.