Salary

Accounting Terms Dictionary

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Salary

A salary is a fixed amount of money that is paid to an employee every pay period.

Ronald earns $5000 a month as a manager. There was a mistake in the financial statements and Ronald had to work an additional 10 hours on Saturday to find the error. Ronald will still get $5000 because he earns a salary and is not paid by the hour. $5000 is his salary.

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