Olan Inc Provides an On-Site Day Care Center Free of Charge

question 8

True/False

Olan Inc. provides an on-site day care center free of charge to employees who have pre-school children. Employees who enroll their children may exclude the value of this fringe benefit from gross income.

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Definitions:

Average Receivables

Represents the average amount of money owed to a company from its customers over a specific period, indicating its efficiency in collecting funds.

Accounts Payable

The amount of money that a company owes its suppliers for goods and services purchased on credit and has not yet paid.

Common-Size Financial Statement

Financial statements that present all items in percentage terms, with each line item displayed as a percentage of a significant figure such as total sales or total assets, for comparison purposes.

Source Of Cash

A Source Of Cash refers to activities or transactions that bring money into a company, increasing its cash flow, such as operating activities, financing activities, and investing activities.