Which of the Following Is the Correct Sequence for Computing

question 53

Multiple Choice

Which of the following is the correct sequence for computing net pay?

• A)Compute gross pay then deduct withholding and add FICA taxes to obtain net pay.
• B)Compute gross pay,compute FICA,deduct pre-tax amounts,and deduct taxes.
• C)Compute gross pay,deduct taxes,and add voluntary deductions.
• D)Compute gross pay,deduct pre-tax amounts,compute FICA,deduct taxes,and deduct post-tax amounts.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to the beginning inventory and subtracting goods sold.

LIFO

Last In, First Out; an inventory valuation method where the most recently produced items are recorded as sold first.

Inventory Costing Method

Refers to the techniques or formulas used by businesses to assign costs to their inventory and determine the cost of goods sold, such as FIFO, LIFO, or weighted average methods.

First-In First-Out (FIFO)

First-In, First-Out (FIFO) is an inventory management and valuation method where goods produced or acquired first are sold, used, or disposed of first.