Employees Don't Include the Value of Any Compensatory Fringe Benefits

question 62

True/False

Employees don't include the value of any compensatory fringe benefits in gross income because the benefit doesn't consist of a direct cash payment.

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Definitions:

Ownership Right

A legal right that confers the possession of assets and the benefits that come from owning them.

Stockholder

An individual or entity that holds one or more shares of stock in a public or private corporation, thus owning a portion of the company.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Chief Accounting Officer

The Chief Accounting Officer (CAO) is a senior executive responsible for managing the accounting operations of an organization.