Which of the following is FALSE?
A) A proprietor's salary is not a tax deductible expense for the company.
B) A corporation owner's salary is a tax deductible expense.
C) Net profit is equal to gross margin minus operating expenses.
D) A profitable business will always have enough cash to pay its bills.

Question

Quizplus · Accepted Answer

A profitable business may not always have enough cash to pay its bills due to timing differences between income and expenses, or if profits are tied up in accounts receivable or inventory.

Which of the Following Is FALSE