Which of the Following Statements Regarding Fringe Benefits Is False

question 111

Multiple Choice

Which of the following statements regarding fringe benefits is false?

• A)The general rule is that an employee fringe benefit is taxable unless the benefit is specifically excluded from the employee's gross income.
• B)Employers are not allowed to deduct the cost of nontaxable employee fringe benefits.
• C)Nontaxable fringe benefits must be provided to employees on a nondiscriminatory basis.
• D)None of the above is false.

---

Definitions:

Bank Balance

The total amount of funds available in a bank account at a given moment, including all deposits and subtracting any withdrawals.

Outstanding Checks

Checks that have been written and recorded in the accounting books but have not yet been cashed or cleared by the bank.

Month-end Bank Statement

A document provided by a bank summarizing the account’s activity and balances over the last month, used for reconciling the bank account.

Erroneously Charged

Refers to a financial transaction or fee that has been incorrectly applied to an account.