A Healthcare Business That Uses Accrual Accounting Issues Employee Paychecks

question 12

Multiple Choice

A healthcare business that uses accrual accounting issues employee paychecks on January 10, 2012 that cover the 14-day work period December 25, 2011 through January 7, 2012. For federal income tax purposes, the employees should ____.

• A) report half that paycheck as 2012 income
• B) report all of that paycheck as 2012 income
• C) report all of that paycheck as 2011 income
• D) deduct the pay for the two federal holidays in that pay period

---

Definitions:

Dependable

Describes something or someone reliable, trustworthy, and consistent in performance or behavior.

Social Situations

Scenarios involving interactions between individuals or groups within a societal context.

Situational Model

A theory or approach suggesting that the effectiveness of leadership, strategies, or decisions depends on specific situational factors.

Leadership Effectiveness

is the degree to which a leader successfully achieves desired outcomes and goals through influencing others.