Johnny Is Compensated Based on a Rate of $25

question 35

Multiple Choice

Johnny is compensated based on a rate of $25.00 per hour worked. Which of the following terms best describes the manner in which Johnny is compensated?

• A) commission
• B) wage
• C) piece rate
• D) salary

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Definitions:

Voucher System

A method for processing accounts payable where a document (voucher) is prepared for every payable transaction, detailing the goods or services received, amounts to be paid, authorization, and accounts to be charged.

Net Method

An accounting method for recording purchases at the net of any trade discounts or rebate.

Discount Period

The amount of time the bank holds a note that was discounted until the maturity date.

Voucher System

A control mechanism in accounting that uses vouchers to record transactions and control disbursements.