Study Guide Intermediate Accounting, Volume 1: Chapters 1 - 14
Study Guide Intermediate Accounting, Volume 1: Chapters 1 - 14
16th Edition
ISBN: 9781119305125
Author: Douglas W. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
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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.

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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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Chapter 20 Solutions

Study Guide Intermediate Accounting, Volume 1: Chapters 1 - 14

Ch. 20 - Prob. 11QCh. 20 - Prob. 12QCh. 20 - Prob. 13QCh. 20 - Prob. 14QCh. 20 - Prob. 15QCh. 20 - Prob. 16QCh. 20 - Prob. 17QCh. 20 - Prob. 18QCh. 20 - Prob. 19QCh. 20 - Prob. 20QCh. 20 - Prob. 21QCh. 20 - Prob. 22QCh. 20 - Prob. 23QCh. 20 - Prob. 24QCh. 20 - Prob. 25QCh. 20 - Prob. 26QCh. 20 - Prob. 27QCh. 20 - Prob. 28QCh. 20 - Prob. 29QCh. 20 - Prob. 1BECh. 20 - Prob. 2BECh. 20 - Prob. 3BECh. 20 - Prob. 4BECh. 20 - Prob. 5BECh. 20 - Prob. 6BECh. 20 - Prob. 7BECh. 20 - Prob. 8BECh. 20 - BE20-9 (L05) Norton Co. had the following amounts...Ch. 20 - Prob. 10BECh. 20 - *BE20-11 (L06,7) Manno Corporation has the...Ch. 20 - *BE20-12 (L06,7) For 2017, Sampsell Inc. computed...Ch. 20 - Prob. 1ECh. 20 - Prob. 2ECh. 20 - Prob. 3ECh. 20 - Prob. 4ECh. 20 - Prob. 5ECh. 20 - Prob. 6ECh. 20 - Prob. 7ECh. 20 - Prob. 8ECh. 20 - Prob. 9ECh. 20 - Prob. 10ECh. 20 - Prob. 11ECh. 20 - Prob. 12ECh. 20 - Prob. 13ECh. 20 - Prob. 14ECh. 20 - Prob. 15ECh. 20 - Prob. 16ECh. 20 - Prob. 17ECh. 20 - Prob. 18ECh. 20 - Prob. 19ECh. 20 - Prob. 20ECh. 20 - Prob. 21ECh. 20 - Prob. 22ECh. 20 - Prob. 23ECh. 20 - Prob. 24ECh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - Prob. 4PCh. 20 - Prob. 5PCh. 20 - Prob. 6PCh. 20 - Prob. 7PCh. 20 - Prob. 8PCh. 20 - Prob. 9PCh. 20 - Prob. 10PCh. 20 - Prob. 11PCh. 20 - Prob. 12PCh. 20 - Prob. 13PCh. 20 - Prob. 14PCh. 20 - Prob. 1CACh. 20 - Prob. 2CACh. 20 - Prob. 3CACh. 20 - Prob. 4CACh. 20 - Prob. 5CACh. 20 - Prob. 6CACh. 20 - Prob. 7CACh. 20 - Prob. 1UJCh. 20 - Prob. 2UJCh. 20 - Prob. 3UJCh. 20 - Accounting, Analysis, and Principles PENCOMP's...Ch. 20 - Prob. 1CECh. 20 - Prob. 2CECh. 20 - Prob. 3CECh. 20 - Prob. 4CECh. 20 - Prob. 1CRCCh. 20 - Prob. 1ISTCh. 20 - Prob. 2ISTCh. 20 - Prob. 3ISTCh. 20 - Prob. 4ISTCh. 20 - Prob. 5ISTCh. 20 - Prob. 1ICACh. 20 - Prob. 2ICACh. 20 - Prob. 3ICACh. 20 - Prob. 4ICACh. 20 - Prob. 5ICACh. 20 - Prob. 6ICACh. 20 - Prob. 7ICACh. 20 - Prob. 8ICACh. 20 - Prob. 9ICACh. 20 - Prob. 10ICACh. 20 - Prob. 11ICACh. 20 - Prob. 12ICA
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