All of the Following Are Characteristic of 401(k)plans EXCEPT ________

question 40

Multiple Choice

All of the following are characteristic of 401(k) plans EXCEPT ________.

• A) categorized as a defined contribution plan
• B) deduction replaces Social Security tax
• C) pretax salary deductions invested
• D) administered by investment firms
• E) considered a savings and thrift plan

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, decay, or obsolescence.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business.

Market Values

The current quoted price at which an asset or a company can be bought or sold.

Book Values

The value of an asset as it appears on a company's balance sheet, calculated as the cost of the asset minus accumulated depreciation.