The Two Types of Retirement Plans Are

question 103

Multiple Choice

The two types of retirement plans are

• A)traditional pensions with "defined benefits" and "defined contribution" plans.
• B)Social security and pension.
• C)savings accounts and IRAs.
• D)Medicaid and Medicare.

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Definitions:

Accounting Equation

The fundamental equation that represents the relationship between an entity's assets, liabilities, and owner's equity; Assets = Liabilities + Owner's Equity.

Revenue Recognition Principle

An accounting principle that stipulates revenue should be recognized and recorded when it is earned, regardless of when the cash is received.

Business Entity Principle

An accounting concept that treats a business as separate and distinct from its owners for purposes of recording financial transactions.

Monetary Unit Principle

An accounting principle that assumes business transactions or events can be measured and expressed in monetary units.