Match Each Statement with the Correct Term Below

question 13

Multiple Choice

Match each statement with the correct term below.
-Cafeteria plan

• A)An employee may exclude up to $5,000 annually of these employer-provided services.
• B)If cash is received under this program, taxpayers are taxed on the amount of cash received.
• C)A salary reduction plan that allows employees to pay for medical and child care costs with before-tax dollars.
• D)A transfer of property without any profit motivation with an intention that includes affection, charity, and respect.
• E)Payments made into an employee's account are not taxable in the current period; taxation is deferred until funds are withdrawn.
• F)Employer provided benefit that may be excluded from income because the dollar amounts are too small for a reasonable accounting.

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Definitions:

Federal Courts

The courts of the United States, which have jurisdiction over cases involving federal law, interstate disputes, and other matters outlined in the Constitution.

U.S. Constitution

The foundational document of the United States of America outlining the framework of the government and the rights of the citizens.

Bankruptcy Court

A federal court of limited jurisdiction that hears only bankruptcy proceedings.

Bankruptcy Law

Bankruptcy Law refers to regulations that govern the process by which individuals or entities unable to pay their debts can seek relief through a legal declaration of bankruptcy.