Identify Which of the Following Statements Is True

question 18

Multiple Choice

Identify which of the following statements is true.

• A) 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.
• B) Accrued compensation that is deductible in the year of accrual is considered to be part of an IRS deferred compensation plan.
• C) 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.
• D) All of the above are false.

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Definitions:

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factors of production including machinery and buildings.

Resource Owners

Individuals or entities that hold legal rights or control over natural, human, or capital resources, enabling them to use or allocate them.

Wind Farms

Areas equipped with large numbers of wind turbines used to generate electricity.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas derived from the remains of living organisms that have been buried for millions of years.