Which of the Following Statements Concerning Cafeteria Plans Is True

question 43

Multiple Choice

Which of the following statements concerning cafeteria plans is true?

• A) Any receipt of cash option that is elected is treated at taxable compensation.
• B) Allows employees to choose from a menu of fringe benefits or to choose cash.
• C) Most of the menu choices are nontaxable fringe benefits.
• D) All of the statements are true.

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Definitions:

Core

The central or most important part of something, often referring to the center of the Earth or the main part of an organization.

Existence Values

The value that people place on knowing that a particular natural environment, species, or cultural heritage exists, even if they will never experience it directly.

Instrumental Value

The value attributed to something for its usefulness in achieving a desired end or purpose, rather than for its inherent qualities.

Greenhouse Effect

A natural process where certain gases in a planet's atmosphere trap heat, keeping the planet warmer than it would be otherwise.