B IncHas an Unfunded Deferred Compensation Program for Its Employees

question 36

True/False

B Inc.has an unfunded deferred compensation program for its employees.In the current year, B employees earned $120,000 in deferred compensation, none of which is taxable to any employee.If B Inc.is an accrual basis taxpayer, the corporation may claim a $120,000 tax deduction in the current year because of its deferred compensation liability.

Distinguish between different types of financial ratios and their purposes.

Interpret the implications of financial ratios for a company's financial management.

Calculate the debt to total assets and debt to total stockholders' equity ratios and understand their implications.

Understand the significance of asset turnover ratios and how they reflect on a company's efficiency.

---

Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Heterogeneity

The quality or state of being diverse in character or content; variety within a group or structure.

Status Construction

The process through which social hierarchies and positions are created and maintained within societies.

Imposter Phenomenon

A psychological pattern in which an individual doubts their accomplishments and has a persistent internalized fear of being exposed as a "fraud."