Which of the Following Is True Concerning Employer Funding of Nonqualified

question 103

Multiple Choice

Which of the following is true concerning employer funding of nonqualified deferred compensation plans?

• A) Employers annually deduct the amount earned by employees under the plan.
• B) Employers may discriminate in terms of who they allow to participate in the plan.
• C) Employers are required to annually fund their deferred compensation obligations to employees.
• D) Employers are required to invest salary deferred by employees in investments specified by the employees.

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Definitions:

Spending Variances

The difference between the actual amount of money spent and the budgeted amount for various cost items.

Refurbishment

The process of cleaning, decorating, and providing new equipment or facilities to make a building or item look new again.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity, allowing for more accurate budgeting in variable operating environments.

Machine-Hours

A measure of production time, where one machine-hour equals the operation of one machine for one hour.