An RPP Differs from an RRSP in That

question 16

Multiple Choice

An RPP differs from an RRSP in that

• A)earnings on the RPP are tax free after five years.
• B)contributions may exceed $2,000 in the RRSP.
• C)an RRSP is set up by an employer for an employee.
• D)An RPP is set up by an employer for an employee.
• E)funds are only to be used for education expenses

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Definitions:

Administrative Expense

Overhead or general expenses related to the administration of a business, not directly tied to any specific department or product.

Expected Net Income

The projected profit of a business after all expenses and taxes have been deducted from total revenue.

Sales Commission

A fee paid to sales personnel, often calculated as a percentage of the sales they generate.

Machine-Hours

A unit of measure for the amount of work or operation time a machine has completed or is expected to complete.