Which of the Following Would Be a Correct Way to Compute

question 65

Multiple Choice

Which of the following would be a correct way to compute the net pay for an employee?

• A)Hours Worked times Authorized Pay Rate
• B)Gross Pay minus Withholding Taxes
• C)Gross Pay minus Authorized Deductions
• D)Hours Worked times Withholding Tax Rate

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Definitions:

Consolidation

Consolidation is the process of combining the financial statements of a parent company and its subsidiaries into a single, comprehensive set of statements.

Outstanding Common Stock

Shares of a company's common stock that have been issued and are in the hands of investors, including those held by the public and company insiders but excluding treasury shares.

Annual Amortization

The procedure of methodically deducting the starting cost of an intangible asset throughout its period of utility.

Retained Earnings

The portion of net profits not distributed to shareholders but reinvested in the business or kept as reserve.