Which of the Following Examples Best Illustrates a Compensating Wage

question 103

Multiple Choice

Which of the following examples best illustrates a compensating wage differential?

• A)Sara and Tom are each 30 years old.Tom earns more than Sara because he has 8 years of work experience, whereas Sara only has 4.
• B)Sara earns more than Tom because she has a bachelor's degree, whereas Tom has an associate's degree.
• C)Sara earns more than Tom because Sara is an electrical engineer, whereas Tom is a fast-food worker.
• D)None of the above is correct.

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Definitions:

Journal Entries

Records of the financial transactions of a business that are entered into its accounting system.

Posting

The process of recording financial transactions in the ledger of a business.

Chart of Accounts

A structured list of all the financial accounts in the general ledger of a company, used for organizing transactions and reporting financial data.

Ledger Accounts

These are individual financial accounts within the accounting system of an organization that record specific transactions related to assets, liabilities, equity, revenue, and expenses.