Which One of These Statements Correctly Applies to a Roth

question 77

Multiple Choice

Which one of these statements correctly applies to a Roth IRA?

• A) Earnings on the account are tax-free after five years.
• B) Annual contributions may exceed $2,000.
• C) Deposits must be in federally-insured accounts.
• D) Funds are only to be used for educational expenses.
• E) Only self-employed workers can contribute to a Roth IRA.

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Definitions:

Statement of Comprehensive Income

A financial statement that presents a company's total income and expenses, including items that have not been realized, providing a complete picture of its overall financial performance.

Goodwill Impairment

A charge that occurs when the market value of goodwill, an intangible asset, drops below its recorded value on the balance sheet, indicating diminished business value.

Discontinued Operation

A component of a business that has been sold, disposed of, or is held for sale, and is reported separately in financial statements.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as one single economic entity.