BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gross income is a tax on all income that a worker earns, and net income is a tax paid by an employer based on a worker’s wages.
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Gross income is a tax paid by an employer based on a worker’s wages, and net income is a tax on all income that a person earns.
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Gross income is the amount an employee is paid after deductions and taxes, and net income is the total amount an employee earns before deductions.
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Gross income is the total amount an employee earns before deductions are applied, and net income is the amount an employee is paid after deductions and taxes.
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Detailed explanation-1: -Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.
Detailed explanation-2: -Net income considers operating expenses while gross profit does not.
Detailed explanation-3: -A company’s gross income, found on the income statement, is the revenue from all sources minus the firm’s cost of goods sold (COGS).
Detailed explanation-4: -The income statement presents revenue, expenses, and net income. The components of the income statement include: revenue; cost of sales; sales, general, and administrative expenses; other operating expenses; non-operating income and expenses; gains and losses; non-recurring items; net income; and EPS.