When Sales Are Made Without the Accompaniment of a Formal

question 43

Multiple Choice

When sales are made without the accompaniment of a formal debt contract, the sales are said to be on:

• A)Conditional sale terms
• B)Open account
• C)Trade credit
• D)Sight draft

Understand the concept of plan vesting and its implications for employees.

Recognize the tax implications of deferred compensation under ERISA.

Understand the IRS's role in the qualification and regulation of retirement plans.

Identify the types of contributions and benefits associated with various retirement plans.

---

Definitions:

Aggregate Production

The total amount of goods and services produced within an economy at a given overall price level in a given period.

Aggregate Purchases

The total amount spent by consumers, businesses, and the government on goods and services within a particular period.

Unintended Inventory Investment

Occurs when a business accumulates more inventory than planned due to unexpected changes in demand or production levels.

Keynesian Theory

An economic theory positing that government intervention through fiscal policy can affect the level of economic activity and mitigate the effects of recessions.