Under Cafeteria Benefit Plans

question 97

Multiple Choice

Under cafeteria benefit plans,

• A) Employees are provided healthy and affordable meals.
• B) Employers are closely inspected for health and safety hazards.
• C) Employees select the benefits they prefer.
• D) Employers can realize significant cost savings.
• E) Employees are covered for injuries on the job.

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Definitions:

Accrued Sales Revenue

Revenue that has been earned but not yet received in cash or recorded by the accounting department.

Adjusting Entries

Financial records entered at the termination of an accounting period, aimed at allocating profits and outlays to the correct period.

Pretax Income

The income earned by a company before deducting taxes, representing the company's profitability after all expenses except taxes.

Accrued Expenses

Liabilities (payables) created when expenses are incurred, but cash will be paid in the future; created at end of period during the adjustment process to reflect the amount of expense incurred that the company will pay in the future.