Under a Qualified Profit-Sharing Plan,contributions Must Be Made at Least

question 48

True/False

Under a qualified profit-sharing plan,contributions must be made at least annually whether or not the employer has positive net income for the year.

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Definitions:

Assets

Resources owned by a company that have economic value and can be converted into cash.

Liabilities

Financial obligations or debts that a company owes to external parties.

Residual Equity

The amount of equity remaining for shareholders after all liabilities have been deducted from total assets.

Owner's Equity

The assets left over in a business once liabilities are cleared, showing the equity of owners or shareholders.