If a Company Is Considered to Have High Employee Turnover

question 54

Multiple Choice

If a company is considered to have high employee turnover, what effect does the turnover have on the Payroll Tax expenses for the business?

• A) Increases payroll tax expenses
• B) Decreases payroll tax expenses
• C) Would not have any effect
• D) May increase or decrease payroll tax expenses depending on the time of the year.

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Definitions:

Debt-service Requirements

This term refers to the amount of money needed to cover the repayment of interest and principal on a debt for a specific period.

Expected Future Cash Flows

The estimated amount of money that is anticipated to be generated from an investment, project, or asset over a period of time in the future.

Financial Statement Item

Any line item or component that appears in financial statements, such as balance sheet, income statement, or cash flow statement, representing a company's financial position or performance.

Unreliable

Not able to be trusted or depended upon for accuracy or truthfulness.