Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement.Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?
A) Jefferson incentive system
B) deferred profit-sharing plan
C) gainsharing plan
D) cash plan

Question

Quizplus · Accepted Answer

With deferred profit-sharing plans, the employer puts cash awards into trust accounts for the employees' retirement. Here the employer generally distributes the awards based on a percentage of the employee's salary, or some measure of the employee's contribution to company profits.

Tanner's Employer Puts a Predetermined Portion of Profits into a Trust