Identify Which of the Following Statements Is True

question 55

Multiple Choice

Identify which of the following statements is true.

• A)A corporation that accrues compensation payable to an employee must pay the amount within two and one-half months after the close of the taxable year to deduct the amount in the year of the accrual.
• B)Accrued compensation that is deductible in the year of accrual is considered to be part of an IRS deferred compensation plan.
• C)Accrued compensation not paid within three and one-half months after the close of the corporation tax year is deducted in the year following the accrual.
• D)All of the above are false.

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Definitions:

Chief Justice

The presiding judge in the supreme court of a country or state, representing the highest judicial authority.

Constitutionality

The quality or state of being in accordance with a nation's constitution, or the legality of actions measured against constitutional principles.

Civil Rights Bill

Legislation aimed at enforcing constitutional rights, particularly those relating to individuals' civil liberties and protections against discrimination.

Reconstruction

The period following the Civil War in the United States, focused on rebuilding the country and integrating Southern states back into the Union.