Which of the Following Cannot Be Included in a Cafeteria

question 38

Multiple Choice

Which of the following cannot be included in a cafeteria plan?

• A) Health insurance
• B) Group-term life insurance (first $50,000 of coverage)
• C) Dependent care assistance (first $5,000)
• D) Self-insured medical reimbursement plan
• E) Educational assistance

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that entitles its holders to dividends that accrue if not paid in any year, payable before any dividends to common stockholders.

Dividends Payable

Liabilities on a company’s balance sheet representing amounts owed to shareholders as part of the profit-sharing from dividends declared.

Issuing Company

A corporation that has put into circulations its shares or bonds to raise capital by selling those securities to investors.

Legal Liabilities

Obligations arising from laws or regulations that a company is required to pay, such as fines, settlements, or judgments.