If a Company Engages in Off-Balance Sheet Financing, Generally the Effect

question 37

Multiple Choice

If a company engages in off-balance sheet financing, generally the effect is:

I. to cause assets to be understated.
II. to increase leverage ratios.
III. to increase cash flows.
IV. to cause liabilities to be understated.

• A)I, II, III, and IV
• B)I, III, and IV
• C)I only
• D)IV only

Identify the tax implications and benefits associated with retirement plan distributions and contributions.

Differentiate between types of retirement plans, including employer-sponsored and individual-based plans.

Calculate the maximum deductible contributions for retirement plans based on income and participation status.

Recognize the tax treatment of distributions from retirement plans and annuities.