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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Which of the following best describes the primary difference between 401(k) and 403(b) retirement accounts?

401(k) plans are insured by the FDIC, while 403(b) plans are not insured.

401(k) plans have no contribution limits, while 403(b) plans have strict annual contribution limits.

401(k) plans allow only after-tax contributions, while 403(b) plans allow only pre-tax contributions.

401(k) plans are offered by for-profit employers, while 403(b) plans are offered by non-profit organizations and public schools.

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Verified step by step guidance

Understand the nature of 401(k) and 403(b) retirement accounts. Both are tax-advantaged retirement savings plans, but they are designed for different types of employers.

Recognize that 401(k) plans are typically offered by for-profit organizations. These plans allow employees to contribute a portion of their salary either pre-tax or post-tax (Roth contributions) to their retirement savings.

Understand that 403(b) plans are specifically designed for employees of non-profit organizations, such as charities, religious institutions, and public schools. Contributions are generally made on a pre-tax basis.

Note that the primary difference between these two plans lies in the type of employer offering them: 401(k) plans are for for-profit employers, while 403(b) plans are for non-profit organizations and public schools.

Review the incorrect options provided in the problem to ensure clarity: FDIC insurance does not apply to either plan, both plans have contribution limits set by the IRS, and both allow pre-tax contributions (with Roth options available for 401(k) plans).