Match Each Statement with the Correct Term Below

question 2

Multiple Choice

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E)Payments made into an employee's account are not taxable in the current period; taxation is deferred until funds are withdrawn.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

Policies

Statements of principle and guidelines, formulated or adopted by an organization, to direct and limit actions in pursuit of its objectives.

Paid-In Capital

Paid-in capital is the amount of money raised by a company in exchange for shares of its stock.

Investments

Investments represent the allocation of resources (such as time, money, or effort) with the expectation of generating an income or profit.

Owners

Individuals or entities that hold the ownership interest in a company, entitling them to the residual profits and assets after liabilities are settled.