Which of the Following Statements Is True About Flexible Spending

question 69

Multiple Choice

Which of the following statements is true about flexible spending accounts?

• A)They can only be used for dependent-care expenses.
• B)They restrict pretax employee contributions.
• C)They work best to the extent that employees have unpredictable expenses.
• D)Funds must be used by the plan's year end or they revert to the employer.
• E)These accounts cause a reduction in the take-home pay.

---

Definitions:

Doctrine of Behaviorism

A theory in psychology that focuses on studying observable behaviors rather than the mental processes behind them, and believes that behaviors are learned from the environment.

Social Psychology

A branch of psychology that deals with understanding how individual thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasizes unconscious motives and conflicts, including the roles of the id, ego, and superego.

Social Cognition

The way in which individuals process, store, and apply information about other people and social situations.