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A 401(k) Plan Is an Example of a Defined-Benefit Retirement

question 38

True/False

A 401(k) plan is an example of a defined-benefit retirement plan.


Definitions:

Bond Payable

A recorded obligation indicating a company must repay a borrowed sum at a set interest rate by a specified date.

Accounts Payable

Liabilities or amounts owed by a business to its creditors for goods and services that have been received but not yet paid for.

Accounts Receivable

Financial obligations of customers to a firm for items or services rendered but not yet compensated.

Face Value

Refers to the nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its legal value.

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