XYZ Sponsors a Defined Contribution Plan for Its Employees

question 42

Multiple Choice

XYZ sponsors a defined contribution plan for its employees.On January 1, Year 1, the company paid $120,000 to the plan's trustee.The trustee called for annual payments of $90,000 to be made annually into the plan.Which of the following best describes the effects of this plan on XYZ's Year 1 financial statements?

• A)XYZ would record pension expense of $90,000 and a non-current asset of $30,000.
• B)XYZ would record pension expense of $90,000 and a current asset of $30,000.
• C)XYZ would record pension expense of $120,000 and no balance sheet amounts.
• D)XYZ would record pension expense of $120,000 and a current asset of $30,000.

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Definitions:

Sustained Attention

The ability to maintain attention to a selected stimulus for a prolonged period of time.

Selected Stimulus

A specific environmental event or condition selected by a researcher to observe its effects on the behavior of an organism.

Divided Attention

The ability to process multiple sources of information at the same time or perform more than one task simultaneously.

Multitasking

The action or capability of handling more than one task simultaneously.