Summary Plan Descriptions (SPDs)

question 9

Multiple Choice

Summary plan descriptions (SPDs) :

• A)must be provided to new employees before they begin their employment
• B)provide a brief overview of the terms of employee benefit plans
• C)can be the basis for claims that employees did not receive promised benefits
• D)are not required by ERISA

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Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, most often used in measuring its financial performance and position.

Capital Assets

Long-term assets acquired or owned by a company, used in its operations and not expected to be converted into cash within a year.

Exchange Rates

The price at which one country's currency can be converted into another's, critical for international trade and finance.

Amortization Expense

The portion of the cost of an intangible asset that is allocated as an expense in a company's income statement over a set period.