This Plan Usually Involves Five Elements: Flexible Benefit Credits, Minimum

question 15

Multiple Choice

This plan usually involves five elements: flexible benefit credits, minimum levels of certain benefits, optional benefits, cash credits, and tax deferral.In this plan, the employer generally allows each employee to spend a specified number of flexible credits, usually expressed in dollar amounts.The options in this plan have to include a choice whether or not to take cash in lieu of benefits.The cash element is necessary in order for a plan to be considered this type of plan for tax purposes.Identify this plan.

• A)Health benefit plan
• B)Retirement plan
• C)Legal assistance plan
• D)401(k) plan
• E)Cafeteria plan

---

Definitions:

Functional Currency

The functional currency is the main currency used by a business or economic entity, reflecting the primary economic environment in which it operates.

Opening Inventory

The value of the goods available for sale at the beginning of an accounting period.

Functional Currency

The currency of the primary economic environment in which an entity operates, usually determined by the currency that mainly influences sales prices for goods and services or the country whose competitive forces and regulations most affect the entity's performance.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company.