Accounting for the Employer's Contribution to a Defined Benefit Pension

question 43

True/False

Accounting for the employer's contribution to a defined benefit pension plan is straight forward, because the employer is obligated only to make annual contributions in the amount specified in the plan terms.

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Definitions:

Equivalent

A term used to denote items, quantities, or expressions that have the same value or function, even though they may appear different at first glance.

Canada Savings Bonds

Canadian government savings products that are available for a limited period each year and offer a guaranteed rate of interest.

Per Annum

A term used to represent an annual occurrence or an amount over the course of a year.

Cashing In

The process of selling or converting a financial asset or investment for cash.