Jack Grimes is hired by First Associates at a salary of $4,000 per month. He is shocked when his first monthly paycheck is only $3,150. Explain to Jack some of the factors that may have contributed to the difference.
What will be an ideal response?
Several deductions are made from an employee's monthly salary to arrive at net pay. These include withheld federal, state, and possibly local income taxes, as well as employee portion of FICA (6% for Social Security and 1.5% for Medicare). In addition, he may have other deductions for medical insurance premiums, pension contributions, and charitable contributions.
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A danger of using celebrities as spokespersons is that their endorsement of too many products tarnishes:
A) credibility B) likeability C) expertise D) attractiveness
Ernst Elf pays his company's bill for two years of insurance coverage. The transaction
a. increases the drawing account and decreases an asset account; b. includes a debit to the cash account; c. decreases an asset account and a liability account; d. increases expenses; e. decreases one asset account and increases another asset account.
The number of units to be included in a study is called the sample size
Indicate whether the statement is true or false
When bonds have been issued at a premium, the periodic amortization of the premium will
a. increase the carrying value of the bonds. b. have no effect on the carrying value of the bonds. c. decrease the carrying value of the bonds. d. cause the carrying value always to equal the face value of the bonds.