Which of the Following Is a True Statement Regarding Saving

question 48

Multiple Choice

Which of the following is a true statement regarding saving for retirement?

• A)In a given year, a taxpayer may participate in either an employer-sponsored defined benefit plan or defined contribution plan but not both.
• B)In a given year, a taxpayer who receives salary as an employee and also receives self-employment income may participate in an employer-sponsored defined contribution plan or may contribute to a self-employed retirement account but not both.
• C)In a given year, a taxpayer may contribute to an IRA (either traditional or Roth)or contribute to a self-employment retirement account but not both.
• D)None of the choices are correct.

---

Definitions:

Direct Labor

Factory labor costs that can be easily traced to individual units of product. Also called touch labor.

Units

A measure of quantity in accounting, production, or inventory management, often used to quantify the amount of output or sales.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions for interest and taxes.

Client-Visits

Meetings or engagements with clients outside or within the company premises to discuss business, services, or products.