A 529 Plan Is

question 37

Multiple Choice

A 529 plan is:

• A) Funds set aside to go toward post-secondary education expenses
• B) An account which allows the holder to write checks against deposited funds
• C) Funds set aside to be withdrawn after age 59.5 without penalty
• D) A plan where taxes are not paid on the money or interest earned until the year it is withdrawn

Recognize internal controls over payrolls and their significance.

Calculate financial ratios, including the quick ratio, to assess a company's liquidity.

Account for warranty and vacation pay expenses in financial statements.

Understand the implications of funded, partially funded, or unfunded pension liabilities on financial statements.

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Definitions:

Internal Rate of Return

A metric used in capital budgeting to estimate the profitability of potential investments, representing the rate of return at which the net present value of costs and benefits of the project equals zero.

Multiple Rates

In finance, often refers to situations where different interest rates apply to different portions of a financial transaction or investment period.

Single Project

A single project refers to a distinct, individualized undertaking that has a specific objective, timeline, and resource allocation, often within a broader organizational or business strategy.

Internal Rate of Return

An analytical tool in finance that determines the profit potential of investments by calculating the return rate at which the total cash flows from a specific project's net present value becomes zero.