Choose the Correct Statement Concerning Pensions (Defined Benefit)and Other Post-Employment

question 87

Multiple Choice

Choose the correct statement concerning pensions (defined benefit) and other post-employment benefits.

• A)Other post-employment benefits payments are more difficult to predict than are pension payments.
• B)The entire other post-employment benefits obligation must be recognized in the balance sheet whereas, in most cases, the pension obligation is not.
• C)Pension expense has six components; other post-employment benefits expense has only five components.
• D)Only pensions require a reconciliation of funded status to be disclosed.

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Definitions:

Standard Deviation

Standard Deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values; in finance, it is commonly used to gauge the volatility of an investment.

Pension Funds

Investment pools that collect and manage funds contributed by employers and employees for future retirement benefits, investing in various assets for long-term growth.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income, effectively lowering the overall tax liability.

Ordinary Income

Income earned from basic sources such as wages, salaries, commissions, and interest, subject to standard tax rates.