Vesting Refers to

question 26

Multiple Choice

Vesting refers to

• A)the employer's right to terminate contributions if a pension plan is adequately funded.
• B)the employer's right to recapture employee contributions to a pension plan if employment terminates prior to retirement.
• C)the employee's right to the employer's contributions or benefits attributable to the contributions if employment terminates prior to retirement.
• D)the employer's right to discriminate against non-highly compensated employees when determining pension benefit levels.

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Definitions:

Freight In

The cost associated with transporting goods from suppliers to the buyer, which is added to the cost of inventory.

Inventory Shrinkage

The loss of products between purchase from supplier and sale to customer, often due to theft, damage, or errors.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Periodic Inventory System

An accounting method that determines inventory levels and cost of goods sold at the end of an accounting period through physical counting.