Which of the Following Is True About Employee Benefits

question 40

Multiple Choice

Which of the following is true about employee benefits?

• A)Government involvement in benefits decisions is minimal.
• B)Impact of legal regulations on benefits is greater than they are on direct compensation.
• C)Understanding the value of a dollar in a benefits package is more complicated than understanding it in a salary.
• D)The tax treatment of benefits programs is often less favorable for employees than the tax treatment of wages and salaries.
• E)Employees are always aware of the benefits available to them as well as how to use them.

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Definitions:

Equity

The value of ownership interest in a company, represented by the amount of assets minus liabilities.

Adjusting Entries

Entries made in accounting records at the end of an accounting period to update the balances of accounts in the preparation of financial statements.

Accounting Period

A specific time period during which financial transactions are recorded and financial statements are prepared.

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.