Question

Which of these scenarios is an example of the timing strategy?

• A corporation paying its shareholders a $20,000 dividend.

• A parent employing her child in the family business.

• A taxpayer gifting stock to his children.

• A cash-basis business delaying billing its customers until after year-end.

• None of the choices are correct.

Answer 1

Answer: Option iv) A cash-basis business delaying billing its customers unitl after year-end

Explanation:

The timining strategy is most improtant in every corporation. Without timing strategy they did not attained their future targets and did not achieve a certain goals.

• A cash-basis business delaying billing its customers until after year-end is an example of timing strategies.

• A corporation paying its shareholders a $20,000 dividend is not an example of timing strategies.

• A parent employing her child in the family business is not an example of timing strategies.

• A taxpayer gifting stock to his children is not an example of timing strategies.

Thus, option iv) is correct and remaining options are incorrect.

answered by: anonymous