The Payroll Tax Receipts

question 43

Multiple Choice

The payroll tax receipts

• A)are used to reduce the national debt.
• B)are invested in private business for future payments.
• C)pay off current recipients of Social Security payments.
• D)go directly into a trust fund for investment in private businesses.

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Definitions:

Basic Earnings

The net income available to common shareholders, divided by the weighted average number of common shares outstanding.

Weighted Average

A calculation that takes into account the proportional relevance of each component, rather than treating them equally.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Common Shares

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.