Match Each Statement with the Correct Term Below

question 96

Multiple Choice

Match each statement with the correct term below.
-Incentive stock option

• A)A separate, parallel tax system designed to ensure a taxpayer pays some tax.
• B)A compensation tool that is based on potential price increases of the company's stock.
• C)An individual trust account maintained for the exclusive benefit of an individual or beneficiary.
• D)A type of defined contribution pension plan in which the company and the employee contribute a fixed percentage of the employee's salary to the plan.
• E)A pension plan in which the benefits are based on the number of years an employee has worked for a company and on the employee's annual salary.
• F)A pension plan whose benefits are determined by the amount of contributions the employee and the company contribute to the plan and the earnings of the plan.

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Definitions:

Accounts Payable

A liability account that records amounts the company owes to suppliers or creditors for purchases or services received on credit.

Physical Inventory Count

A physical inventory count is the process of manually counting all merchandise or stock in a business to verify records and manage inventory levels.

Cost Of Inventory

The total cost incurred to acquire, produce, and place inventory items available for sale, including purchase price, shipping, handling, and storage.

Cost Of Goods Sold

An expense representing the total cost of materials and labor required to produce goods that have been sold in a given period.