DECA+ Business Management and Administration Practice Exam 2025 – All-in-One Guide to Guaranteed Success!

Question: 1 / 400

Which term captures income earned for the pay period before deductions?

Net Salary

Gross Pay

Gross pay is the term that refers to the total income earned by an employee during a specific pay period before any deductions are subtracted. This includes all compensation elements such as wages, bonuses, overtime pay, and any other earnings. Understanding gross pay is essential because it provides a clear picture of the complete earnings without considering taxes, health insurance, retirement contributions, or any other deductions.

In contrast, net salary represents the take-home pay after all deductions have been made. Take-home pay specifically highlights the amount an employee receives after taxes and other deductions, distinct from the total earnings. Wage rate refers solely to the compensation rate per hour or per task and does not encompass the total income for a pay period. Thus, gross pay effectively captures the pre-deduction income and sets the foundation for understanding overall earnings.

Get further explanation with Examzify DeepDiveBeta

Take-home Pay

Wage Rate

Next Question

Report this question

Download DECA+ Business Management and Administration Practice Exam 2025 – All-in-One Guide to Guaranteed Success! PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy