Accounting is the measurement of economic activity and encompasses the gathering of information, classifying the data, entering the data into a database (most often an accounting software), generating reports for management and finally interpreting the outputs.

Bookkeeping – Cafeteria Plans (Lesson 92)

Cafeteria Plans

Cafeteria plans, a.k.a. Section 125 plans, are employer sponsored benefit packages that allow employees to choose from a menu of options and allocate their allotted share to the items they pick. With this type of plan the employer agrees to an allowance per employee to contribute to the package. The employee may either take the allowance as additional cash income (fully taxed) or allocate the amount among the various benefit options.

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