A Defined Benefit Plan Differs from a Defined Contribution Plan

question 19

Multiple Choice

A defined benefit plan differs from a defined contribution plan in that a defined benefit plan

• A)has a liability that must be actuarially computed.
• B)is required by ERISA.
• C)requires a corporation to make a series of payments of a specified amount to a pension fund.
• D)requires journal entries, and the defined contribution plan does not.

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Definitions:

Multiple R

A statistic that represents the correlation between observed and predicted values of a dependent variable in a regression analysis, indicating model fit.

R Square

The ratio of the variance in the outcome variable that can be attributed to the influence of predictor variables in a regression analysis.

Dependent Variables

Variables in an experiment or model that are affected by changes in the independent variables, typically outcomes or results being measured.

Categorical Variable

A variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual or other entity to a particular group or nominal category.