Regarding Net Pay,which of the Following Statements Is Incorrect

question 45

Multiple Choice

Regarding net pay,which of the following statements is incorrect?

• A) The net pay amount is not important for accounting purposes.
• B) The amount of compensation that the employee actually takes home is net pay.
• C) The employer either writes a paycheck to each employee for his or her net pay or directly deposits the employee's net pay into the employee's bank account.
• D) Net pay equals gross pay minus all deductions.

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Definitions:

Canadian Treasury Bills

Short-term government securities issued by the Government of Canada, maturing in one year or less, and used as a means for the government to raise funds.

Increased Value

The rise in the worth or market price of an asset.

Annual Dividend

The total amount of dividends a company pays out to its shareholders over a year, often expressed as a per share amount.