Which of the Following Statements Concerning Pensions Is Correct

question 57

Multiple Choice

Which of the following statements concerning pensions is correct?

• A)Defined benefit plans offer a retiree more security than defined contribution plans.
• B)The accounting for a defined contribution plan is more complex than for a defined benefit plan.
• C)Pension funding must always equal the pension expense.
• D)The employee will forfeit vested pension contributions if he\she is terminated.

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Definitions:

Net Income

The net income of a company, calculated by removing all costs and taxes from the total sales.

Consolidated Income Statement

A financial statement that combines the income statements of a parent company and its subsidiaries, providing a comprehensive overview of the total income generated.

Operating

Relating to the day-to-day business activities involved in running a company, such as selling, managing, and producing goods or services.

Peripheral Activities

Operations or tasks that are not central to the main business or objectives of an organization, but may still generate revenue or provide support.