Which of the Following Is/are Advantages of Tax-Deferred Income Benefits

question 40

Multiple Choice

Which of the following is/are advantages of tax-deferred income benefits? I. Postponing tax payments allows interest to accrue on dollars owed to the government.
II. Deferral allows compound interest to also accumulate on a tax-deferred basis.

• A) I only
• B) II only
• C) Both I and II
• D) Neither I nor II

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Definitions:

DSM-5

The Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders serves as the definitive guide for healthcare professionals to diagnose mental disorders.

Classifying

The process of organizing objects or ideas into categories based on shared qualities or characteristics.

Psychologically Disordered Behaviors

Actions or patterns of behavior that deviate significantly from societal norms and expectations, often causing distress or functional impairment.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification system for mental disorders published by the American Psychiatric Association.