Flexible Spending Accounts and Premium-Only Plans Are Versions of Which

question 51

Multiple Choice

Flexible spending accounts and premium-only plans are versions of which cafeteria plan? (Types of Flexible Benefit Plan Arrangements)

• A)Modular
• B)Pretax salary reduction
• C)Core-plus-option
• D)Mix-and-match

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Definitions:

Financial Accounting

The process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time, in order to produce financial statements.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

FIFO

An accounting method where the first items placed in inventory are the first sold or used.