Which of the Following Is Likely to Be an Unreported

question 257

Multiple Choice

Which of the following is likely to be an unreported economic activity?

• A)a $250,000 bonus paid to the CEO of a company
• B)tips paid to a taxi driver
• C)the minimum wage paid to a teenager working at a McDonald's
• D)the brokerage fees paid to a broker at Merrill Lynch
• E)the purchase of shares of stock in Walgreen's Pharmacy

---

Definitions:

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period, including operating and non-operating expenses.

Total Revenues

The complete amount of income generated by a business through its activities, before any costs or expenses are deducted.

Private Accountants

Accountants employed by a single company to handle its financial records, analysis, and reporting.

Business Enterprises

Organizations engaged in commercial, industrial, or professional activities, aiming to earn profits.