The Payroll Master File Serves Which Purpose

question 43

Multiple Choice

The payroll master file serves which purpose?

• A) It is a repository of all employees currently employed and recently discharged.
• B) It lists key employee data such as pay rate and deduction information.
• C) It lists the year-to-date earnings information for each employee.
• D) All of the above.

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Definitions:

Retention Ratio

This metric indicates the percentage of net income a firm retains to reinvest in its business rather than distributing to shareholders as dividends.

Dividend Payout Ratio

The fraction of earnings a company pays out to its shareholders in the form of dividends.

Cash Dividends

Distributions of a company's earnings to shareholders in the form of cash.