If an Employee Incurs Travel Expenditures and Is Fully Reimbursed

question 641

True/False

If an employee incurs travel expenditures and is fully reimbursed by the employer, neither the reimbursement nor the deduction is reported on the employee's tax return if reporting is pursuant to an accountable plan.

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Definitions:

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.

Payables Turnover

A financial ratio that shows how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its credit sales.

Cash Cycle

The duration a company takes to convert its investments in inventory and other resources into cash flows from sales.