AccountingA sole proprietor may use both cash basis and accrual basis accounting, butonly when the business and personal tax year ends are different.TrueFalseEducational expenses incurred to qualify to get a new job are 50% deductibleby the employer who reimburses a new employee upon signing anemployment contract.TrueFalseAll expenses incurred while traveling away from a tax home during a businesstrip are deductibleTrueFalseIf an employee has the chance of receiving cash in lieu of lodging whentraveling for legitamate business reasons, the amount is still deductible but at areduced %TrueFalseA simple majority of the twenty factors of Rev-Rul 87-41 must be present toclassify a worker as an employee versus an independent contractor.TrueFalseThe cost of any personal related expenses (i.e. pleasure vs.business) incurredduring travel is never deductible by the employer.TrueFalse

Sole proprietorship refers to the individual entrepreneur which is a kind of enterprise owned as…

Answered: A sole proprietor may use both cash…

A sole proprietor may use both cash basis and accrual basis accounting, but only when the business and personal tax year ends are different. True

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Accounting
A sole proprietor may use both cash basis and accrual basis accounting, but
only when the business and personal tax year ends are different.
True
False
Educational expenses incurred to qualify to get a new job are 50% deductible
by the employer who reimburses a new employee upon signing an
employment contract.
True
False
All expenses incurred while traveling away from a tax home during a business
trip are deductible
True
False
If an employee has the chance of receiving cash in lieu of lodging when
traveling for legitamate business reasons, the amount is still deductible but at a
reduced %
True
False
A simple majority of the twenty factors of Rev-Rul 87-41 must be present to
classify a worker as an employee versus an independent contractor.
True
False
The cost of any personal related expenses (i.e. pleasure vs.business) incurred
during travel is never deductible by the employer.
True
False

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