Which of the Following Statements Is True Regarding a Defined

question 44

Multiple Choice

Which of the following statements is true regarding a defined benefit pension plan?

• A)Defined benefit plans are relatively easy to handle from an accounting perspective.
• B)Employers that use defined benefit plans are assuming more risks than employers that use defined contribution plans.
• C)Defined benefit plans require an employer to contribute a defined sum each period to a pension fund.
• D)A defined benefit plan requires the employer to fund the plan each year for an amount equal to the pension expense.

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Definitions:

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