The Procedure Used by Accountants to Convert Data About Transactions

question 20

Multiple Choice

The procedure used by accountants to convert data about transactions to financial statements is called _____.

• A) the cash flow method
• B) the statement of owners' equity
• C) the accounting cycle
• D) the balance sheet

---

Definitions:

Monthly Salary

The amount of money an employee is paid each month for their job performance, not including bonuses or overtime pay.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been removed.

FICA Tax

The Federal Insurance Contributions Act (FICA) tax is a payroll tax in the United States that is required from both employers and employees to support Social Security and Medicare programs.

Federal Income Tax

A tax levied by the federal government on an individual's or corporation's annual income.