Which of the Following Statements Regarding Self-Employed Retirement Accounts Is

question 88

Multiple Choice

Which of the following statements regarding self-employed retirement accounts is true?

• A) A self-employed taxpayer who has hired employees may not set up a SEP IRA.
• B) A self-employed taxpayer who has hired employees may set up either a SEP IRA or an individual 401(k).
• C) A self-employed taxpayer who has hired employees may not set up an individual 401(k).
• D) All of these statements are false.

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Definitions:

Ending Liabilities

The total debts and financial obligations a company owes at the end of a reporting period.

Post-closing Trial Balance

A financial report created after closing entries are made, listing all accounts and their final balances to ensure debits equal credits.

Proper Form

The required or correct format, arrangement, or procedure that a document, action, or process must adhere to according to rules, standards, or laws.

Closing

The process of finalizing accounts at the end of an accounting period to prepare them for the next period.