Ramsey Corporation Allows an Employee, Corrine, to Use a Company

question 52

Multiple Choice

Ramsey Corporation allows an employee, Corrine, to use a company car for her vacation to San Diego.
I.Corrine will not need to recognize the value of the use of the car since it was not cash.
II.A "cash equivalent approach" is used to measure the amount of income that must be recognized by Corrine.
III.The employer/employee relationship indicates that the receipt of the use of the car is a type of compensation for services rendered.
IV.Income recognition is not necessary in this case.
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• A)Only statement I is correct.
• B)Only statement IV is correct.
• C)Only statements II and III are correct.
• D)Only statements I and IV are correct.
• E)Only statements II, III, and IV are correct.

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Definitions:

Instance Variables

Variables defined in a class for which each instantiated object of the class has its own separate copy, or instance.

Mutator Methods

Methods designed to set or modify the values of an object's attributes while keeping the encapsulation principle intact.

Integer Values

Whole numbers that can be positive, negative, or zero, not including decimals or fractions.

Instance Variable

A variable declared inside a class but outside any method, and is unique to each instance of the class.