A Contract That Calls for Regular Payments to an Individual

question 143

Multiple Choice

A contract that calls for regular payments to an individual for life or for a fixed period of time is called a(n)

• A) annuity.
• B) fixed dividend plan.
• C) mutual fund.
• D) level premium agreement.

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Definitions:

Payroll Register

A detailed document that records the earnings, deductions, and net pay for all employees for each pay period.

Gross Payroll

The total amount of money paid by an employer to its employees before deductions such as taxes, retirement contributions, and health insurance.

Federal Unemployment Tax Rate

A tax rate set by the federal government to fund unemployment compensation payments to workers who have lost their jobs.

Salaries Payable

Salaries payable is an account that records the amounts owed to employees for work performed but not yet paid.