22) A payroll deduction required by the federal government and used to pay the cost of the employment

insurance programs is called

A) Joint employment tax

B) Contribution employment tax

C) Employment insurance

D) Provincial employment tax

E) Periodic employment tax

23) The amount an employee earns before any deductions such as EI, CPP, and income tax withholdings is the

A) Take home pay

B) Net pay

C) Deductible pay

D) Gross pay

E) Taxable income

24) A company has 10 employees who earned a total of $30,000 in January ($3,000 each). CPP taxes are 4.95%

paid by employees and 4.95% paid by the employer. Income tax withholdings amount to $4,500. The employee

EI rate is 1.66% of the total, and the employer EI contribution is 1.4 times the employee portion. The gross pay

of the 10 employees during January is

A) $28,230 B) $30,000 C) $29,190 D) $33,209 E) $33,113

25) Valentine company has 9 employees who earned a total of $27,000 in June ($3,000 each). CPP deductions

are 4.95% paid by the employees and 4.95% paid by the employer. Income tax withholdings amount to $4,500.

The employee EI rate is 1.66%. The take-home pay of the 9 employees for June is

A) $22,002.90

B) $27,000.00

C) $20,715.30

D) $19.960.50

E) $19,478.40

26. To determine how much merchandise was returned from a company's customers, the company should review the

A) Inventory Account.

B) Cost of Goods Sold Account.

C) Sales Returns and Allowances Account.

D) Sales Discounts Account.

27. Net Sales - Cost of Goods Sold is equal to

A) Net Income from Operations.

B) Operating Expenses.

C) Gross Profit.

D) Gross Expenses.

28. Gross Profit equals

A) Net sales - Other Expenses.

B) Sales - Sales Returns and Allowances - Sales Discounts - Cost of Goods Sold.

C) Cost of Goods Sold - Other Expenses.

D) Cost of Goods Sold - Operating Expenses.

29. Which of the following is NOT an operating expense?

A) Payroll Tax Expense

B) Interest Expense

C) Postage Expense

D) Salaries Expense

30) If Net Sales is $7,000, Cost of Goods Sold is $3,000, Gross Profit is $4,000 and Operating Expenses are $1,000, what

is the Net Income from Operations?

A) $2,000

B) $4,000

C) $1,000

D) $3,000