Which of the Following Statements About Company Policies Is NOT

question 82

Multiple Choice

Which of the following statements about company policies is NOT True?

• A) When a firm has few policies, a supervisor has greater flexibility to deal with situations as they occur.
• B) Policies are guides to decision making, not guides to action.
• C) Written policies are more flexible and informal than unwritten ones.
• D) Supervisors seldom need to issue policies.

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Definitions:

Repair Expense

Costs incurred to fix or maintain property or equipment, generally deductible in the year they are incurred for tax purposes.

IRC Section 179

Allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service (rephrased definition for §179 Expense).

Depreciated

The reduction in the recorded cost of an asset in accounting, reflecting wear and tear, age, or obsolescence.

Ordinary Expense

An expense that is common, accepted, necessary, and appropriate for a business or individual's trade or profession under tax law.