ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$3391.66
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$373.08
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$385
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$3608.33
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Detailed explanation-1: -Gross salary is calculated by adding an employee’s basic salary and allowances prior to making deductions, including taxes. Here, a basic salary is the base income of an employee or the fixed part of one’s compensation package. Provident Fund is not taken into account while deriving the gross salary.
Detailed explanation-2: -How to calculate annual income. To calculate an annual salary, multiply the gross pay (before tax deductions) by the number of pay periods per year. For example, if an employee earns $1, 500 per week, the individual’s annual income would be 1, 500 x 52 = $78, 000.
Detailed explanation-3: -For tax purposes, a deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income while completing a tax form. The deductible expense reduces taxable income and, therefore, the amount of income taxes owed.
Detailed explanation-4: -The gross profit formula is: Gross Profit = Revenue – Cost of Goods Sold.