Which of the Following Statements Regarding Fringe Benefits Is False

question 111

Multiple Choice

Which of the following statements regarding fringe benefits is false?

• A)The general rule is that an employee fringe benefit is taxable unless the benefit is specifically excluded from the employee's gross income.
• B)Employers are not allowed to deduct the cost of nontaxable employee fringe benefits.
• C)Nontaxable fringe benefits must be provided to employees on a nondiscriminatory basis.
• D)None of the above is false.

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Definitions:

Foreign Subsidiary

A company that is owned or controlled by another company (parent company) and is located in a different country.

Functional Currency

The form of money prevalent in the primary financial setting where an organization conducts its operations and accrues cash flows.

Common Shares

Securities representing ownership in a corporation, providing voting rights and entitling holders to a share of the company's success through dividends and appreciation.

Hyper-Inflationary

Refers to an economic situation characterized by extremely high and typically accelerating inflation rates, leading to a rapid erosion of the currency's value.