Under ERISA, One Method for Becoming Vested Gives Employers the Option

question 30

Multiple Choice

Under ERISA, one method for becoming vested gives employers the option of allowing employees to become 100 percent vested after ____ years of service.

• A)three
• B)five
• C)seven
• D)ten

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Definitions:

Prepaid Expenses

Expenses paid in advance and recorded as assets until they are actually used or consumed.

Unearned Revenues

Represents income received by a company for goods or services that are yet to be delivered or performed.

Accrued Revenues

Income earned during an accounting period but not yet received or recorded at the statement date, representing future cash receipts.

Annual Depreciation

The amount of depreciation expense allocated for a fixed asset in one year, based on the asset's useful life and cost.