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3 years ago

All of the following statements about flexible spending accounts (FSAs) are TRUE, EXCEPT:

Business

1 answer:

Alexxandr [17]3 years ago

5 0

Answer:

c. Funds remaining in the account at the end of the year roll forward to the next year.

Explanation:

Flexible spending accounts is created by an employer for the employee and is a type of savings account that allows the account holder with certain tax benefits. The employee is required to contribute some amount from his earnings to the account. Contributions made to this account are deducted from your account thereby decreasing your taxable income.The funds are utilized for payment of qualified expenses.

The funds should be used by the end of the year. But the employer can give grace period of two and half months within which you should completely use the fund and finish it. Sometimes the employer might let you roll over $500 per year from the unused fund from your account.

So funds remaining in the FSA at the end of the year doesn't roll forward to the next year. All other statements are correct.

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Answer:

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August = $238,400

Explanation:

Note that credit sales account for only 80% of total sales, the remainder should be considered as cash receipts in the month of sale. Cash receipts for July are 20% of July total sales, plus 25% of July credit sales, plus 55% of June credit sales, and 20% of May credit sales:

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Budgeted cash receipts are:

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Answer:

The answer is below

Explanation:

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Answer:

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