Employer-Provided Spending Accounts

question 47

Multiple Choice

Employer-provided spending accounts:

• A)May be set up for tax-free vacation savings
• B)Are not allowed for dependent care
• C)Do not require that the employee provide receipts for the expenses incurred
• D)Allow qualifying expenses to be treated as tax-free reductions in the employees' salaries

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Definitions:

ROE

Return on Equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Total Assets

The sum of all current and non-current assets owned by a company, indicated on the balance sheet, representing the total resources available to a company.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholder equity.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently those assets are used to generate profit.