Which of the Following Is a True Statement Regarding Saving

question 26

Multiple Choice

Which of the following is a true statement regarding saving for retirement?

• A) In a given year, a taxpayer may participate in either an employer-sponsored defined benefit plan or defined contribution plan but not both.
• B) In a given year, a taxpayer who receives salary as an employee and also receives self-employment income may participate in an employer-sponsored defined contribution plan or may contribute to a self-employed retirement account but not both.
• C) In a given year, a taxpayer may contribute to an IRA (either traditional or Roth) or contribute to a self-employment retirement account but not both.
• D) None of these is a true statement

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Definitions:

Evaluate

To Evaluate means to systematically assess something by considering its merits, qualities, or values, usually in a detailed and analytical manner.

Internal Controls

Steps and guidelines set by a business to secure the trustworthiness of its financial and accounting information, promote ethical accountability, and inhibit fraud.

Establishment of Responsibility

An accounting control principle that ensures tasks are assigned to individuals in a way that accountability can be determined.

Segregation of Duties

A risk management and control strategy that divides tasks among different people to reduce the risk of fraud or error.