Which Statement About "Defined Contribution Plans" Is Correct

question 31

Multiple Choice

Which statement about "defined contribution plans" is correct?

• A)Pension expense equals the contributions made based on the plan formula.
• B)Pension expense equals the present value of the future benefits to be paid to the retiree.
• C)Pension cost cannot be capitalized to the cost of inventory.
• D)Pension cost may not be capitalized to the construction cost of property,plant and equipment.

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Definitions:

Practical Intelligence

Intelligence that relates to the ability to solve everyday problems through adaptive or creative reasoning.

Social Intelligence

The ability to understand and manage interpersonal relationships and to navigate social situations effectively.

Verbal Intelligence

The capacity to analyze information and solve problems using language-based reasoning.

WAIS Test

The Wechsler Adult Intelligence Scale, a widely used test designed to measure a person’s cognitive ability.