Which of the Following Is Not Taxable to an Employee

question 62

Multiple Choice

Which of the following is not taxable to an employee when paid for by the employer?

• A)A $200 gift certificate given to each employee at Christmas
• B)Personal use of a company automobile
• C)Housing provided by the employer in lieu of a $400 housing allowance
• D)$150 for a business-related seminar

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Definitions:

Bank Loan

A sum of money lent by a bank to a borrower at an agreed interest rate.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and prepare the company's books for the next period.

Statement of Income

A report detailing the earnings, expenses, and net profit of a business over a fiscal period, illustrating the financial performance.

Zero Balance

A situation where an account's balance is exactly zero, indicating no funds or no outstanding amount.