Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

All of the following are advantages of saving for retirement in a 401(k), except:

Contributions may reduce your taxable income

Employers may offer matching contributions

Withdrawals before age 59½ are always tax-free

Investment earnings grow tax-deferred

Previous problemNext problem

Verified step by step guidance

Understand the concept of a 401(k): A 401(k) is a retirement savings plan sponsored by an employer. It allows employees to save and invest a portion of their paycheck before taxes are taken out.

Review the advantages of a 401(k): Contributions can reduce taxable income, employers may offer matching contributions, and investment earnings grow tax-deferred. These are key benefits of the plan.

Clarify the tax implications of withdrawals: Withdrawals from a 401(k) before age 59½ are generally subject to income tax and may incur an additional 10% early withdrawal penalty, unless specific exceptions apply.

Identify the incorrect statement: The claim that 'Withdrawals before age 59½ are always tax-free' contradicts the tax rules for 401(k) plans, as early withdrawals are typically taxed and penalized.

Conclude that the correct answer is the statement that does not align with the advantages of a 401(k), which is 'Withdrawals before age 59½ are always tax-free.'