Chad Is a Senior Manager with Gusto, Inc

question 21

Multiple Choice

Chad is a senior manager with Gusto, Inc. Chad's secretary, Loretta, takes care of several of Chad's personal tasks when time permits. Loretta arranges for the weekly pickup and delivery of Chad's laundry and dry cleaning. Loretta also books reservations to the theater and arranges for tickets to basketball games for Chad. Chad hopes that Loretta's services are classified as

• A)No additional cost services.
• B)An employee discount.
• C)A de minimis fringe benefit.
• D)Dependent care services.
• E)Bonus pay.

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Definitions:

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Damaged Merchandise

Items that have suffered physical harm impairing their value, functionality, or saleability, which often result in inventory write-offs or markdowns.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or operate a business activity.

Stockholders' Equity

After subtracting liabilities, the remaining interest in a company's resources represents the stake owned by its shareholders.