Which of the Following Statements Is Incorrect

question 11

Multiple Choice

Which of the following statements is incorrect?

• A)An annuity is a series of payments pursuant to a contract.
• B)A payment to a beneficiary from a pension plan is called a distribution.
• C)Contributions to a pension plan can only be made by the beneficiary.
• D)With a qualified pension plan,earnings on plan assets are not taxed in the year earned.

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Definitions:

Aging Assets

Refers to the process by which assets, especially tangible fixed assets, decrease in operational efficiency and value over time due to wear and use.

Financial Statement Analysis

The process of reviewing and evaluating a company's financial statements to make informed decisions about its financial health and performance.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Return on Assets

A financial metric that measures the profitability of a company relative to its total assets, indicating how effectively a company uses its assets to generate profit.