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:

Backward Conditioning

A learning process where a conditioned stimulus is presented after the unconditioned stimulus, generally considered ineffective.

Licensing

A business arrangement in which one party allows another to use its brand, patent, or intellectual property in exchange for a fee or royalty.

Product Association

The connection or linkage of a product with certain qualities, emotions, or concepts in the minds of consumers.

Allowable Franchising

A franchising arrangement wherein the franchisor grants the franchisee the rights to operate under the brand's trade name within specific, agreed-upon terms and limitations.