Which of the following statements regarding compensation is false?
A)Wages are usually paid by the hour
B)Salary is usually a form of fixed compensation
C)Bonuses are a form of compensation obtained if certain criteria are met
D)Bonuses paid within 2½ months of year end are included in employee's compensation in the year they were earned.Employees include compensation into income in the year received.

Question

Quizplus · Accepted Answer

Bonuses paid within 2½ months of year end are included in employee's compensation in the year they were earned, but employees are required to include compensation into income in the year they receive it. This statement is false because employees must include compensation in their income in the year they receive it, regardless of when it was earned or when the bonus was paid.

Which of the Following Statements Regarding Compensation Is False