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:

Presumed Guilt

The principle or state of assuming an individual is guilty without evidence or before the completion of a fair and just legal process.

Legal System

The comprehensive framework of rules and institutions within a society that govern individuals, entities, and their interactions.

Commercial Bribery

The act of offering, giving, receiving, or soliciting something of value to influence the actions of a businessperson or employee without the knowledge or consent of the employer.

Vice President

An executive or officer ranking below a president or CEO, often responsible for a specific department or area within an organization.