Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees. To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Question

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Answer 1

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Students have asked these similar questions

Delta's inventory records for February reflect the following details: On February 1, the beginning inventory consisted of 250 units priced at $3.20 each. On February 9, Delta made its first purchase of 350 units at a cost of $3.50 each. A second purchase was made on February 18, consisting of 500 units priced at $3.70 each. By the end of the month, on February 28, Delta sold 700 units at a price of $6.50 per unit. Using the FIFO (First-In, First-Out) cost flow method, what is the cost of goods sold (COGS) for February?

Please explain the solution to this general accounting problem with accurate principles.

Please explain how to solve this financial accounting question with valid financial principles.

Answer 2

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Answer 3

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

Answer 6

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

Answer 7

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Answer 8

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.