What Is the Difference Between a Defined Benefit and a Defined

question 69

Multiple Choice

What is the difference between a defined benefit and a defined contribution retirement plan?

• A) Defined benefit plans limit employee contributions while employed.
• B) Defined contribution plans allow employees to contribute a set amount toward their retirement plan while employed.
• C) Defined contribution plans allow employees to determine a specific amount of money they wish to receive upon retirement.
• D) Defined benefit plans allow employees to set aside money on a tax-exempt basis.

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Definitions:

Posting

The transferring, copying, or recording of information from a journal to a ledger.

Sliding

A term often used in various contexts to describe a gradual, steady movement or shift from one position or condition to another.

Accounting Cycle

A sequence of steps undertaken in a specific order by businesses to handle their financial transactions from their inception to their inclusion in the financial statements.

Recording Journal Entries

The process of documenting all financial transactions of a business in the double-entry accounting system through debits and credits.