Multiple Choice
Which of the following best describes the primary difference between financial accounting, managerial accounting, and tax accounting?
23
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which term is commonly used to refer to an employee's take-home pay after all deductions have been made?
A
Gross pay
B
Retained earnings
C
Net pay
D
Revenue
Verified step by step guidance1
Understand the concept of gross pay: Gross pay refers to the total earnings of an employee before any deductions such as taxes, insurance, or retirement contributions are made.
Learn about deductions: Deductions are amounts subtracted from an employee's gross pay, including mandatory deductions (e.g., income tax, Social Security) and voluntary deductions (e.g., health insurance premiums, retirement savings).
Define net pay: Net pay, also known as take-home pay, is the amount an employee receives after all deductions have been subtracted from their gross pay.
Differentiate net pay from other terms: Retained earnings refer to profits retained by a company for reinvestment, and revenue refers to the total income generated by a business. These terms are unrelated to an employee's pay.
Apply the concept: When asked about an employee's take-home pay after deductions, the correct term to use is 'Net pay,' as it represents the final amount received by the employee.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations