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Which of the Following Statements Concerning Cafeteria Plans Is True

Question 76

Multiple Choice

Which of the following statements concerning cafeteria plans is true?


A) Allows employees to choose from a menu of fringe benefits or to choose cash.
B) Most of the menu choices are nontaxable fringe benefits.
C) Any receipt of cash option that is elected is treated as taxable compensation.
D) All of the statements are true.

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