How Is the Pension Expense Calculated for a Defined-Contribution Plan

question 32

Multiple Choice

How is the pension expense calculated for a defined-contribution plan?

• A)Based on the contributions made by the employer that year.
• B)Based on the expected portion of future benefits that were earned that period.
• C)Based on the expected portion of current benefits that were earned that period
• D)Based on the amount that the employer should contribute this year to meet the future expected benefit earned this year.

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Definitions:

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