Vested Benefits

question 72

Multiple Choice

Vested benefits

• A)usually require a certain minimum number of years of service.
• B)are those that the employee is entitled to receive even if fired.
• C)are not contingent upon additional service under the plan.
• D)are defined by all of these.

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Definitions:

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows money to finance a lease or purchase.

Actuarial Information

Data and analysis provided by actuaries, concerning the evaluation of financial risks, especially those related to insurance and pensions, using mathematics, statistics, and financial theories.

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, allowing the lessee to benefit from asset depreciation and interest expense deductions.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in discounting cash flows.