Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Payroll and Payroll Taxes

Financial Accounting

9. Current Liabilities

Payroll and Payroll Taxes

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Multiple Choice

In the context of payroll and payroll taxes, the excess return is computed as the:

difference between the actual return and the expected return

sum of gross pay and payroll taxes withheld

total payroll tax liability divided by the number of employees

amount of net pay after all deductions

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Verified step by step guidance

Understand the concept of 'excess return' in the context of payroll and payroll taxes. Excess return typically refers to the difference between the actual return and the expected return, which is a financial term often used in investment contexts. However, in payroll, it may relate to discrepancies or variances in expected versus actual payroll figures.

Analyze each option provided in the problem to determine its relevance to payroll and payroll taxes. For example, the 'difference between the actual return and the expected return' aligns with the definition of excess return in financial contexts.

Evaluate the second option, 'sum of gross pay and payroll taxes withheld.' This does not relate to excess return but rather describes components of payroll calculations.

Consider the third option, 'total payroll tax liability divided by the number of employees.' This calculation provides an average payroll tax liability per employee, which is unrelated to excess return.

Review the fourth option, 'amount of net pay after all deductions.' Net pay is the employee's take-home pay after deductions, which does not align with the concept of excess return. Based on this analysis, the first option is the most accurate definition of excess return in this context.