Kristine Is the Controller of Evans Company

question 66

Multiple Choice

Kristine is the controller of Evans Company. Evans provides all management level employees with medical insurance through a self-insured plan. During the current year, Kristine has $2,650 in medical expenses reimbursed by the plan. The income tax effect of the reimbursements Kristine receives is:
I.Kristine excludes the value of the reimbursement.
II.Kristine includes $2,650 in her gross income.
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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:

Correlational Studies

Research methods designed to identify and assess the relationships between two or more variables without inferring a cause-and-effect relationship.

Learning Processes

The methods or sequences through which individuals acquire new information, behaviors, or skills.

Plausible Excuses

Reasonable justifications offered to explain behavior or actions that may not initially be obvious.

Internalized Conscience

The part of an individual's psyche that is made up of internalized moral standards, guiding right and wrong conduct.