Indicate Which of the Following Statements Is True

question 6

Multiple Choice

Indicate which of the following statements is true.

• A)Dependent care plans can only be used to cover the costs of caring for a dependent child.
• B)Medical flexible spending accounts can be used to cover dentist fees.
• C)Public transportation may be covered by an employer-provided spending account, but parking can not be covered.
• D)Dependent care accounts may include day care but not preschool

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Definitions:

Normal Course of Business

The regular, day-to-day activities and operations conducted by a company to generate revenue.

Stock Dividend

A disbursement by a company to its stockholders, consisting of extra shares instead of monetary funds.

Cash Dividend

A cash dividend refers to the distribution of profits by a corporation to its shareholders in the form of cash.

Stock Split

A corporate action in which a company divides its existing shares into multiple ones to boost the liquidity of the shares, though the company's market capitalization remains unchanged.