In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. b. requires that pension expense and the cash funding amount be the same. c. defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. d. defines the benefits that the employee will receive at the time of retirement.
In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. b. requires that pension expense and the cash funding amount be the same. c. defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. d. defines the benefits that the employee will receive at the time of retirement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In a defined-benefit plan, a formula is used that
Select one:
a.
requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee.
b.
requires that pension expense and the cash funding amount be the same.
c.
defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees.
d.
defines the benefits that the employee will receive at the time of retirement.
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