Which adjective describes the total amount before tax is paid or other deductions?

Which adjective describes the total amount before tax is paid or other deductions?

• A. Net
• B. Gross
• C. Net income
• D. Disposable

Answer: (B)

Understanding the difference between gross and net figures is key. Gross describes the total amount earned before any deductions, such as taxes or other withholdings. Net describes what remains after those deductions. Net income specifically is the earnings after taxes and deductions, and disposable income refers to what’s left after taxes and essential expenses for non‑essential spending. Since the question asks for the adjective describing the total amount before deductions, the term is gross. For example, gross pay is the full salary before tax, while net pay is what you take home after tax.

Understanding the difference between gross and net figures is key. Gross describes the total amount earned before any deductions, such as taxes or other withholdings. Net describes what remains after those deductions. Net income specifically is the earnings after taxes and deductions, and disposable income refers to what’s left after taxes and essential expenses for non‑essential spending. Since the question asks for the adjective describing the total amount before deductions, the term is gross. For example, gross pay is the full salary before tax, while net pay is what you take home after tax.