Sally Is a Corporate Sales Representative for Computer City

question 32

Multiple Choice

Sally is a corporate sales representative for Computer City.Sally receives a monthly travel allowance from Computer City to cover her travel costs (transportation,food,lodging,entertainment,etc. ) .If Sally is not required to account to Computer City for the use of the travel advance
I.Sally will not have to show any aspect of the travel reimbursement or expenses incurred if she spends all of the reimbursement on valid travel expenses.
II.Sally will only have gross income to the extent her travel allowance exceeds her actual costs.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Directors Approval

A formal endorsement by a company's board of directors to proceed with an action or decision.

Merger Plan

A strategic blueprint for combining two or more companies into a single entity, detailing the legal, financial, and operational steps involved.

Share Exchanges

A process by which companies exchange their own shares with each other, often as a means of acquisition or merger.

Authorized

Having legal or official approval to do something.