Which of the Following Statements About Flexible Spending Accounts Is

question 94

Multiple Choice

Which of the following statements about flexible spending accounts is NOT true?

• A)They can only be used for dependent-care expenses
• B)They permit pre-tax employee contributions
• C)They are regulated under the federal tax code
• D)Funds must be used by the plan's year end or they revert to the employer

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Definitions:

Game Theory

A study of strategic decision making, analyzing interactions with formalized incentive structures ("games").

Strategic Choices

Decisions made by individuals or organizations that have significant long-term implications on their objectives and activities.

Prisoners' Dilemma

A situation in game theory where two individuals acting in their own self-interest do not produce the optimal outcome for either party.

Optimal Behavior

Actions or decisions that maximize the benefit or utility to an individual or entity under given constraints.