N the Paragraph Below, a Statement Contains Two Pairs of Terms

question 51

Multiple Choice

n the paragraph below, a statement contains two pairs of terms enclosed in parentheses. Determine which term in each pair correctly completes the statement. Then select the answer choice containing the two terms that you have chosen. Every employee benefit plan governed by the Employee Retirement Income Security Act (ERISA) must distribute a summary plan description (SPD) to participants within (90 / 120) days after the date on which the plan is adopted or made effective. Thereafter, if the plan is amended, a new SPD must be distributed every (5 / 10) years.

• A) 90 / 5
• B) 90 / 10
• C) 120 / 5
• D) 120 / 10

---

Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or loss.

Common Stock

This represents units of ownership interest or equity in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Net Income

The sum total of profit a company achieves after removing the costs and tax payments from its income.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair market value of its net assets.