Ben Carmichael Has Been Making Contributions into an Individual Retirement

question 140

Multiple Choice

Ben Carmichael has been making contributions into an individual retirement account for his retirement.His contributions are tax deductible as his employer does not offer a retirement plan.What type of individual retirement account does he have?

• A)Traditional IRA
• B)Roth IRA
• C)Spousal IRA
• D)Coverdell Education Savings Account
• E)401(k)

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Definitions:

Credit Terms

The conditions, including payment deadlines and interest rates, under which credit is extended to a borrower.

Aging Schedules

Timetables in accounting that categorize a company's accounts receivable according to the length of time an invoice has been outstanding.

Overdue Accounts

Financial accounts or receivables that have not been paid by the due date.

Receivables

Amounts owed to a company by its customers for goods or services provided on credit.