Sole Proprietors Are Allowed to Deduct Owner-Employee Salaries and Fringe

question 46

True/False

Sole proprietors are allowed to deduct owner-employee salaries and fringe benefits.

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Definitions:

Managerial Accounting

The field of accounting focused on providing financial and nonfinancial information to help managers make decisions to fulfill the objectives of an organization.

Financial Accounting

The field of accounting focused on the preparation of financial statements for external users, such as investors and creditors.

Merchandising Businesses

Companies that purchase goods in a finished state and sell them without changing their form, typically involving retail and wholesale entities.

Delta Air Lines

A major American airline known for its extensive domestic and international network.