Which of the Following Statements Is Incorrect

question 95

Multiple Choice

Which of the following statements is incorrect?

• A)Individual-based retirement plans include a Roth IRA.
• B)Distributions from a pension plan may be made in a lump sum or may be spread out in payments over many years.
• C)Tax-deferred plans can be created for purposes other than retirement.
• D)If a pension plan is funded with contributions that have not been taxed,the distributions will not be taxed.

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Definitions:

Bad Debts Expense

Bad debts expense is the cost associated with accounts receivable that a company does not expect to collect due to customers being unlikely to pay.

Credit Balance

A situation where the total credits in an account exceed the total debits.

Aging

A method used in accounting to categorize and assess the financial health of receivables or inventory based on the period they have been outstanding or in stock, respectively, to identify potential losses or risks.

Accounts Receivable

Liabilities of customers to a business entity for services or products provided but still awaiting payment.