The Process by Which Financial Information About a Business Is

question 33

Short Answer

The process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties is called________.

Distinguish between different types of liabilities and their disclosures in financial statements.

Comprehend and execute the journalization of various types of notes.

Grasp the accounting process for payroll, including calculations of net pay, deductions, and employer tax expenses.

Identify and understand internal controls related to payroll.

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Definitions:

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, but the future benefit is not predetermined.

Pension Plan

A type of retirement plan that requires an employer to make contributions to a pool of funds set aside for an employee's future benefit.

Annual Pension Contributions

The total amount of money contributed to a pension fund by the employer, employees, or both within a year, intended to support employees' retirement benefits.

Cumulative Earnings

The total amount of net income a company has earned over its lifetime, after dividends are paid out.