One Common Characteristic Shared by Both the Roth IRA and Traditional

question 70

Multiple Choice

One common characteristic shared by both the Roth IRA and traditional IRA is that both

• A)have contribution limits.
• B)require that disbursements begin at age 70 1/2.
• C)cease contributions at age 70 1/2.
• D)have identical tax advantages.

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Definitions:

Depreciation Expense

The deliberate partitioning of the expenditure for a solid asset over its period of utility.

Capital Intensity Ratio

A firm’s total assets divided by its sales, or the amount of assets needed to generate $1 in sales.

Retention Ratio

The retention ratio, in financial terms, refers to the percentage of a company's net income that is retained and not distributed as dividends to shareholders, indicating how much of its profit a company reinvests.

Dividend Payout Ratio

A financial ratio that measures the percentage of a company's net income that is distributed to shareholders in the form of dividends.