The Contribution Limit for a Defined Contribution Plan for 2018

question 89

Multiple Choice

The contribution limit for a defined contribution plan for 2018 is:

• A) $5,500
• B) $18,500
• C) $55,000
• D) $220,000

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Definitions:

Normal Debit Balance

The typical balance that an account should have, where asset and expense accounts usually have debit balances.

Accounts Payable

The short-term liabilities or obligations a company owes to suppliers for goods and services purchased on credit.

Merchandise Inventory

Merchandise Inventory is the value of a company's goods that are ready for sale to customers at any given time.

Sales Revenue

The income received by a company from its sales of goods or the provision of services, before any expense deduction.