Extra Compensation Items That Are Not Paid Directly to an Employee

question 199

Multiple Choice

Extra compensation items that are not paid directly to an employee are called ________.

• A) bonuses
• B) benefits
• C) wages
• D) commissions

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Definitions:

External Transaction

A financial event involving an exchange between the business and another entity outside of the company.

Accounting Equation

The foundation of double-entry bookkeeping, represented as Assets = Liabilities + Equity.

Equity

The value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off.

Stockholders

Stockholders, also known as shareholders, are individuals or entities that own one or more shares of stock in a public or private corporation, giving them ownership interests.