Differences Between Pensions and Postretirement Benefits Include All of the Following

question 7

Multiple Choice

Differences between pensions and postretirement benefits include all of the following except

• A)Postretirement healthcare benefits are generally uncapped while pensions are generally well-defined.
• B)Postretirement healthcare benefits are generally paid as needed and used, whereas pension benefits are generally paid monthly.
• C)Postretirement healthcare benefits are generally paid only to the retiree while, pensions are generally paid to the retiree, the spouse, and other dependents.
• D)Postretirement healthcare benefits are generally not funded while pensions are generally funded.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, typically recorded as an expense for the period it relates to.

Year-End

The conclusion of an accounting period, typically the end of the fiscal or calendar year, when companies finalize their financial statements.

60-Day Note

A financial instrument or a loan agreement that requires repayment of the principal amount along with any accrued interest within 60 days.

Note Receivable

A written promise that entitles the holder to receive a specified amount of money at a set date in the future, often bearing interest.