Information Storage

question 122

Multiple Choice

Information storage:

• A)Eliminates the need for professional judgment.
• B)Keeps data in a form accessible to information processors.
• C)Provides the basic information processed by an accounting system.
• D)Captures information from source documents.
• E)Is always in electronic format.

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Definitions:

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been subtracted.

Social Security Tax

A tax that funds the Social Security program, deducted from employees' salaries and matched by employers, supporting retirees, disabled workers, and survivors.

Federal Income Tax

This is a tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Social Security Tax

A tax that funds the Social Security program, typically collected as part of the FICA tax.