Which of the Following Is NOT a Disadvantage of Flexible

question 53

Multiple Choice

Which of the following is NOT a disadvantage of flexible benefit programs?

• A)Administrative burdens and expenses increase.
• B)Adverse selection of benefits by employees results in increase in costs.
• C)New benefits are more difficult to introduce.
• D)Flexible benefits are subject to nondiscrimination requirements in Section 125 of Internal Revenue Code.

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Definitions:

Depositor's Account

A financial account held at a bank or financial institution, into which a depositor can deposit and withdraw money.

Debit Memorandum

A document issued by a purchaser and sent to a seller indicating the amount and reasons for deductions in the payment or an increase in the purchaser's debt.

Bank Service Charge

A fee charged by a bank for the maintenance of an account or for processing transactions.

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company's bank statement with the amount shown in the company's own records.