Examlex
Which of the following terms is correctly matched with its description?
Pension Funding
The process of setting aside financial resources to cover future pension benefits for employees.
Cumulative Gain
The total amount of profit earned over a period of time, adding together successive gains from operations or investments.
Corridor Threshold
A term used in pension accounting that refers to the allowable range in fluctuation in the value of pension assets or liabilities; amounts outside this corridor may require amortization to keep the pension's accounting measures stable.
Pension Expense
The annual cost recognized by an employer for its contributions to employees' retirement plans, reflecting the cost of benefits earned by employees during the year.
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