Which of the Following Is Not an Example of a Taxable

question 7

Multiple Choice

Which of the following is not an example of a taxable fringe benefit?

• A)Personal use of corporate jet.
• B)$1,000,000 group-term life insurance policy.
• C)$225 of employer-provided parking.
• D)Automobile allowance.

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Definitions:

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Liquidity

The ease with which an asset or security can be converted into ready cash without affecting its market price.

Preferred Shareholders

Investors who own preferred shares in a company, which often grant them benefits such as fixed dividend payments and priority over common shareholders in case of liquidation.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price.