Employer-Provided Spending Accounts

question 47

Multiple Choice

Employer-provided spending accounts:

• A)May be set up for tax-free vacation savings
• B)Are not allowed for dependent care
• C)Do not require that the employee provide receipts for the expenses incurred
• D)Allow qualifying expenses to be treated as tax-free reductions in the employees' salaries

---

Definitions:

Fluid Intelligence

The capability to solve new problems, use logic in new situations, and identify patterns without relying on pre-existing knowledge.

Crystallized Intelligence

Crystallized intelligence refers to the ability to use skills, knowledge, and experience, which tends to increase over a person's lifetime.

Fluid Intelligence

The capacity to reason quickly and think abstractly, enabling problem solving and the ability to adapt to novel situations.

Problem Solving

The process of working through details of an issue to reach a solution, often involving critical thinking and logic.