Anna Contributes Pretax Dollars to an Account Managed by Her

question 70

Multiple Choice

Anna contributes pretax dollars to an account managed by her employer for her health care expenses.If she does not spend all of her money by the end of the year,she may forfeit it.What kind of plan does she have?

• A) FSA
• B) HRA
• C) HSA
• D) Medicare
• E) Self-funded health plan

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Definitions:

Factory Insurance Costs

Premiums paid for insurance policies that protect manufacturing facilities and equipment against losses or damages.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or providing services.

Journal Entry

A record in accounting that notes the details of a financial transaction in a company’s financial systems.

Raw Materials

Basic materials that are used in the production process to manufacture goods, often transformed or converted into the finished product.