All of the Following Are Characteristic of 401(k)plans EXCEPT ________

question 18

Multiple Choice

All of the following are characteristic of 401(k) plans EXCEPT ________.

• A)categorized as a defined contribution plan
• B)deduction replaces Social Security tax
• C)pretax salary deductions invested
• D)considered a savings and thrift plan

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners.

Operating Cash Flows

The cash generated from the primary revenue-producing activities of a business, indicating its health and ability to generate funds internally.

Pro Forma Statements

Financial statements prepared to show the effects of future events or transactions, typically used in projections.

Bottom-Up Approach

An investment analysis approach focusing on individual stocks or companies, as opposed to the broader market conditions or economic trends.