Match Each Statement with the Correct Term Below

question 22

Multiple Choice

Match each statement with the correct term below.
-Flexible benefits 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E)Payments made into an employee's account are not taxable in the current period; taxation is deferred until funds are withdrawn.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:

Date Of Declaration

The specific date on which a company's board of directors announces the issuance of a dividend.

Liability

Financial obligations or debts that an entity is legally required to repay in the future.

Company

A business entity created by a collection of people to conduct and manage an enterprise, whether it be for commercial or industrial purposes.

Par Common Stock

The nominal or face value of a share of common stock as stated in the corporate charter, with no direct link to the market value.