Match Each Statement with the Correct Term Below

question 43

Multiple Choice

Match each statement with the correct term below.
-De minimus fringe

• 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E)Payments made into an employee's account are not taxable in the current period; taxation is deferred until funds are withdrawn.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:

Barbara Streisand CDs

Compact discs containing music recorded by Barbara Streisand, an American singer, actress, and filmmaker.

Karen Carpenter CD

A compact disc featuring the music of Karen Carpenter, an American singer known for her contributions to the duo The Carpenters.

Per Capita Income

The average income earned per person in a certain area, calculated by dividing the area's total income by its total population.

Price Elasticity

A metric that reflects the degree to which the demand for a product changes in response to alterations in its price, indicating consumer sensitivity to price fluctuations.