Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) Tying rewards to a profit-based measure can provide an incentive for managers to manipulate accounting results.
• B) Pay systems can be used at all levels of the organisation.
• C) Pay systems focus on long-term results.
• D) A pay system can include both cash and non-cash rewards.

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Definitions:

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Standard Deduction

A fixed amount that taxpayers can subtract from their taxable income, reducing the tax they owe, without itemizing deductions.

Taxable Income

Income subject to taxation, after adjustments, deductions, and exemptions are accounted for.

Itemized Deductions

Expenses listed individually on a tax return that can be subtracted from adjusted gross income to reduce taxable income.