Which of the Following Is an Option for an Employee

question 83

Multiple Choice

Which of the following is an option for an employee under the mandatory vesting established by ERISA:

• A) to have 100 percent vesting after 10 years of employment
• B) to have 25 percent vesting after five years, then 5 percent vesting a year for five years, then 10 percent vesting a year for five years, to achieve 100 percent vesting in 15 years
• C) vesting under the rule of 45
• D) all of the other specific choices are correct
• E) none of the other specific choices are correct

---

Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Permanent Accounts

Accounts that carry their balances over into the next accounting period, including assets, liabilities, and equity accounts.

Trial Balance

A financial worksheet that consolidates all ledger balances into equal debit and credit column totals.