This term describes a person's income before any deductions.

This term describes a person's income before any deductions.

• A. Gross
• B. Net
• C. Revenue
• D. Salary

Answer: (A)

Gross pay describes a person’s income before any deductions. It’s the total amount earned from wages or salary, tips, and other compensation before taxes, retirement contributions, health insurance, and other withholdings. For example, if you earn $3,000 gross in a pay period, deductions will reduce what you actually receive to net pay. Net pay is what you take home after those deductions. Revenue refers to money a business earns, not an individual’s earnings. Salary is a form of compensation and can be gross, but the general term for income before deductions is gross.

Gross pay describes a person’s income before any deductions. It’s the total amount earned from wages or salary, tips, and other compensation before taxes, retirement contributions, health insurance, and other withholdings. For example, if you earn $3,000 gross in a pay period, deductions will reduce what you actually receive to net pay. Net pay is what you take home after those deductions. Revenue refers to money a business earns, not an individual’s earnings. Salary is a form of compensation and can be gross, but the general term for income before deductions is gross.