Compensation

question 35

Multiple Choice

Compensation

• A)is the term used for time off earned by working extra hours.
• B)is the pay workers receive for being injured on the job.
• C)refers to lawsuit settlements.
• D)is synonymous with the term wage in the text.
• E)excludes fringe benefits.

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Definitions:

Accounting Principles

The standardized rules and guidelines that companies are required to follow when reporting financial data, ensuring consistency, reliability, and comparability of financial statements.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owners' share of the company’s assets.

Owner's Investments

Funds or assets contributed by the owner(s) to the business to increase its capital.

Expenses

Costs incurred by a business in the process of earning revenue, such as rent, salaries, and utility bills.