Which of the Following Statements Best Describes Fringe Benefits

question 53

Multiple Choice

Which of the following statements best describes fringe benefits?

• A) All fringe benefits are paid by the federal government.
• B) Examples of fringe benefits include vacation and sick leave.
• C) Fringe benefits are classified as a form of direct compensation.
• D) Profit sharing is a form of fringe benefit.

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Definitions:

Separately Elected

The process or state of being chosen or elected independently from others or through a separate procedure.

Proprietary Fund Types

Types of funds in governmental accounting used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful.

Statement of Cash Flows

A financial report that details the inflows and outflows of cash within a company over a specific period.

Governmental Fund Types

Types of funds used by governmental entities to account for their financial resources, including general, special revenue, debt service, capital projects, and permanent funds.