When a Payroll Tax Is Enacted,what Happens to the Wage

question 173

Multiple Choice

When a payroll tax is enacted,what happens to the wage received by workers and the wage paid by firms

• A)The wage received by workers falls and the wage paid by firms rises.
• B)The wage received by workers and the wage paid by firms both fall.
• C)The wage received by workers rises and the wage paid by firms falls.
• D)The wage received by workers and the wage paid by firms both rise.

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Definitions:

Allowance for Doubtful Accounts

A contra-account reducing accounts receivable to reflect the amount expected not to be collected due to customers' defaulting.

Gross Amount

The total amount before any deductions, such as taxes, expenses, or discounts, are subtracted.

Trade Receivables

Trade receivables are amounts due to a business for goods sold or services provided on credit terms to customers.

Formal Instrument

A legal document expressing an agreement, obligation, or right enforceable by law.