Which of the Following Is not True Regarding Defined Contribution

question 1

Multiple Choice

Which of the following is not true regarding defined contribution pension plans?

• A) Employees make regular contributions to the plan.
• B) Employers make regular contributions to the plan.
• C) The employer bears all of the investment risk.
• D) Benefits are directly related to the earnings of the funds investments.
• E) The number of defined contribution plans is increasing.

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Definitions:

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.

Adjustments Column

A column in accounting ledgers or tables used to record changes or corrections to initial entries prior to preparing financial statements.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure a company's bookkeeping system is mathematically correct.

Accounting Cycle

The comprehensive process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on the financial statements.