Which of the following is not a characteristic of a defined-contribution pension plan?The employer's contribution each period is fixed.If the employer does not make contribution in full, then it reports a pension liability. If the employer contributes more than the required amount, then it reports a pension asset.An appropriate funding pattern must be established to ensure that the promised benefits at employees’ retirement will be met.The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.

Contribution pension plan is a retirement plan in which both the employer and the employee…

Answered: Which of the following is not a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following is not a characteristic of a defined-contribution pension plan?

The employer's contribution each period is fixed.
If the employer does not make contribution in full, then it reports a pension liability. If the employer contributes more than the required amount, then it reports a pension asset.
An appropriate funding pattern must be established to ensure that the promised benefits at employees’ retirement will be met.
The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.

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