Paolo Is a Part-Time Security Guard for a Local Facility

question 21

Multiple Choice

Paolo is a part-time security guard for a local facility.He earned $298.50 during the most recent weekly pay period.He is married with four withholding allowances.What is his Medicare tax liability for the pay period?

• A) $43.23
• B) $10.54
• C) $8.65
• D) $4.33

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Definitions:

Inventory Turnover

A ratio indicating how many times a company’s inventory is sold and replaced over a specific period.

ACP

Average Collection Period, indicating the average number of days it takes for a company to collect its receivables.

Pledging Receivables

Pledging receivables involves using the money owed to a company by its customers as collateral for a loan.

Effective Cost

Effective cost refers to the total cost of a financing option when all charges, fees, and interest payments are taken into account.