Regarding Gross and Net Pay,which of the Following Statements Is

question 84

Multiple Choice

Regarding gross and net pay,which of the following statements is correct?

• A) Gross pay minus all deductions such as income tax withheld equals net pay.
• B) Net pay represents the total salaries and wages expense to the employer.
• C) For most businesses, gross pay equals net pay.
• D) Employers are required to deposit net pay into the employee's bank account.

---

Definitions:

Inventories

The complete list of items such as property, goods in stock, or the contents of a building.

Accounts Payable

The amounts due by a company to its suppliers or creditors for goods and services received but not yet paid for.

Net Cash Inflow

The difference between the cash received and cash expended in a given period, resulting in an increase in cash holdings.

Financing Activities

Cash flows related to actions that alter the equity or borrowings of an entity, reflecting how a business funds its operations and investments.