When a Company Sets Up a Defined Contribution Pension Plan

question 76

Multiple Choice

When a company sets up a defined contribution pension plan, the __________ bears all the risk, and the __________ receives all the return from the plan's assets.

• A) employee; employee
• B) employee; employer
• C) employer; employee
• D) employer; employer
• E) Cannot determine; depends on the economic environment.

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Definitions:

Contra-Revenue Account

An account that is used to record deductions from gross revenue, resulting in net revenue.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profits or losses.

Missing Account Titles

Refers to the names or titles that are not provided or omitted in financial records or statements where they are expected to be listed.