When Computing National Income,which of the Following Is Included in Compensation

question 39

Multiple Choice

When computing national income,which of the following is included in compensation of employees?

• A) wages and salaries paid to employees
• B) employers' contributions to Social Security and employee benefit plans
• C) the monetary value of fringe benefits,tips,and paid vacations
• D) all of the above

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Definitions:

Paid

Refers to the status of an obligation or invoice that has been settled or fulfilled through payment.

Vertical Analysis

An approach to financial statement examination whereby each component is presented relative to a foundational number in the report.

Balance Sheet

An accounting summary that captures a company's financial holdings, debts, and stockholders' equity at a given time.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period of time.