Identify Which of the Following Statements Is True

question 55

Multiple Choice

Identify which of the following statements is true.

• A)A corporation that accrues compensation payable to an employee must pay the amount within two and one-half months after the close of the taxable year to deduct the amount in the year of the accrual.
• B)Accrued compensation that is deductible in the year of accrual is considered to be part of an IRS deferred compensation plan.
• C)Accrued compensation not paid within three and one-half months after the close of the corporation tax year is deducted in the year following the accrual.
• D)All of the above are false.

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Definitions:

Paralyzes

Refers to the condition of causing a muscle or body part to lose strength or movement.

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation, used to assess lung health.

Total Lung Capacity

The maximum amount of air the lungs can hold after an individual takes the deepest breath possible.

Residual Volume

The amount of air left in the lungs after a forced exhalation, which cannot be voluntarily expelled.