You Can Contribute to an IRA

question 61

Multiple Choice

You can contribute to an IRA

• A)only if they do not have a company-sponsored retirement plan.
• B)only if they have less than a specified level of wealth.
• C)only if they have a company-sponsored retirement plan.
• D)regardless of membership in a company-sponsored pension plan and their total earned income.

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Definitions:

Net Income

The remaining earnings of a business following the deduction of all expenses and tax liabilities from its total revenue.

ROE

Return on Equity is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company utilizes investments to generate earnings growth.

Current Ratio

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing a company's current assets to its current liabilities.

Inventories

Assets consisting of goods available for sale to customers in the ordinary course of business.