Which of the Following Is True of Pension Termination

question 24

Multiple Choice

Which of the following is true of pension termination?

• A) Companies can terminate a pension plan whenever they wish to do so.
• B) Terminating a pension plan is illegal in U.S.
• C) A company must start a new defined benefit plan after it eliminates the old one.
• D) FASB requires recognition in earnings of a gain or loss when a pension obligation is settled.

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Definitions:

Licensed

Officially permitted to practice or conduct a particular activity, often by having met specific qualifications or standards.

Cognitive Psychologist

A specialist in psychology who studies mental processes such as perception, memory, thought, and problem-solving.

Play Behaviour

The range of activities performed for self-amusement that are often exploratory, expressive, and imaginative, particularly in children.

Job Incentive

A motivational factor or benefits given to employees to encourage increased productivity.