Kristine Is the Controller of Evans Company

question 66

Multiple Choice

Kristine is the controller of Evans Company. Evans provides all management level employees with medical insurance through a self-insured plan. During the current year, Kristine has $2,650 in medical expenses reimbursed by the plan. The income tax effect of the reimbursements Kristine receives is:
I.Kristine excludes the value of the reimbursement.
II.Kristine includes $2,650 in her gross income.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Highly Automated

Systems or processes that operate with a high level of automation, involving minimal human intervention and utilizing advanced technologies such as robotics and artificial intelligence.

Hand Labor

Work that is done manually by human workers, as opposed to being performed by machines or automated processes.

Benchmarking

Selecting a demonstrated standard of performance that represents the very best performance for a process or an activity.

Divisions

Separate sections or branches of an organization, each responsible for specific operations or functions within the larger entity.