21 Which of these statements about gross income and net income is true? A Gross income is a tax on all income that a worker earns, and net income is a tax paid by an employer based on a worker's wages. B Gross income is a tax paid by an employer based on a worker's wages, and net income is a tax on all income that a person earns. C Gross income is the amount an employee is paid after deductons and taxes, and net income is the total amount an employce earns before deductions are applied. D Gross income is the total amount an employee earns before deductions are applied, and net income is the amount an employce is paid after deductions and taxes.

Gross income is like the big delicious cake of all the money you earn before anyone takes a slice out of it. It includes wages, bonuses, and any other income sources. Now, net income is what you actually take home to enjoy—it's the cake after everyone has taken their piece for taxes, insurance, and other deductions. So, the correct answer is D: Gross income is the total amount, and net income is what's left after deductions. When you're budgeting, knowing the difference between gross and net income is crucial. Picture this: you’ve got a new gig, and your salary sounds amazing, but remember, that’s your gross income! Make sure to calculate your net income to avoid the shock of what’s actually hitting your bank account after taxes and other deductions are taken out. Trust me, nobody wants to plan a fabulous vacation only to realize they can barely afford the plane ticket!