It Is Extremely Wise to Contribute at Least as Much

question 152

True/False

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

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Definitions:

Operating Activities

Day-to-day business functions and transactions related to a company's core business operations, such as sales and purchasing.

Net Income

The profit a company has after all expenses, taxes, and costs have been subtracted from total revenue.

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, as a distribution of the company’s earnings.

Direct Method

A technique used in accounting to prepare the cash flow statement, where actual cash flows from operating activities are reported instead of adjustments to net income.