Match Each of the Following Terms with the Appropriate Definitions

question 221

Multiple Choice

Match each of the following terms with the appropriate definitions.
-A potential obligation that depends on a future event arising from a past transaction.

• A)Long-term liability
• B)Warranty
• C)FUTA taxes
• D)FICA taxes
• E)Contingent liability
• F)Net pay
• G)Withholding allowance
• H)Estimated liability
• I)Merit rating
• J)Wage bracket withholding table

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Definitions:

Long Bonds

Bonds with a long duration to maturity, typically over 10 years, often associated with higher risk but higher yield.

Capital Gains Yield

The price appreciation component of the total return on an investment, calculated as the increase in the investment's price divided by its initial price.

Dividends

Profit distributions paid out to shareholders by a company.

Shares

Ownership units in a corporation, representing a portion of the company's capital.