MATCHING KEY TERMS AND DEFINITIONS

question 25

Multiple Choice

MATCHING KEY TERMS AND DEFINITIONS
-A type of retirement program whereby each employee has an individual account to which both the employee and the employer may make contributions.

• A)Summary Plan Description
• B)Defined contribution plan
• C)Health Maintenance Organization
• D)Flexible benefits
• E)Workers' compensation
• F)Domestic partner benefits
• G)Legally required benefits
• H)Unemployment compensation
• I)Social Security
• J)PPO
• K)Employee benefits
• L)ERISA
• M)Consumer driven health plan (CDHP)
• N)Flexible spending accounts
• O)Defined benefit plan

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Definitions:

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life evenly, resulting in a fixed amount of depreciation expense each period.

Taxable Income

The portion of income that is subject to income tax, after deductions and exemptions.

Permanent Differences

These are differences between taxable income and accounting income that will not reverse in future periods.

Interperiod Income Tax Allocation

The process of allocating income taxes over various accounting periods because of temporary differences that cause taxable income to differ from accounting income.