The Main Purpose of Using a Tax-Sheltered Retirement Account to Invest

question 151

Multiple Choice

The main purpose of using a tax-sheltered retirement account to invest for retirement is to

• A)have the government ultimately collect more in taxes from you.
• B)leave more money to your heirs.
• C)provide your employer with a tax-deduction.
• D)let you accumulate more money for retirement.

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Definitions:

Processing Activity

Refers to operations or work performed in a systematic sequence to alter materials or information.

Activity-Based Costing

An accounting method that identifies and assigns costs to specific activities, making it easier to accurately measure the cost and performance of particular activities.

Machine-Hours

A measure of production time that refers to the number of hours a machine is in operation.

Activity Rate

It is a measure used in activity-based costing to allocate overhead costs to products or services, based on the activities that go into producing them.