Which of the Following Statements Concerning Cafeteria Plans Is True

question 43

Multiple Choice

Which of the following statements concerning cafeteria plans is true?

• A) Allows employees to choose from a menu of fringe benefits or to choose cash.
• B) Most of the menu choices are nontaxable fringe benefits.
• C) Any cash elected is treated at taxable compensation.
• D) All of these are true statements.

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions such as heart rate, digestion, and breathing.

Involuntary Muscles

Muscles that operate without conscious control, involved in functions such as heartbeat and digestion.

Somatic

Pertaining to or affecting the body, especially as distinct from the mind or the environment.

Pituitary Gland

A small endocrine gland in the brain that produces hormones influencing various bodily functions, including growth, metabolism, and reproduction.