A Pension Plan Where Contributions Are Made Jointly by Employees

question 127

Multiple Choice

A pension plan where contributions are made jointly by employees and employers is referred to as a:

• A)contributory plan.
• B)noncontributory plan.
• C)defined-benefit plan.
• D)defined-contribution plan.

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Definitions:

Financial Information

This encompasses all the data regarding the financial status, performance, and changes in financial position of an entity.

Normal Balance

The side (debit or credit) of an account that is increased. For example, assets increase on the debit side, while liabilities increase on the credit side.

Chronological Order

The arrangement of events, numbers, or actions in the sequence that they occurred or were performed.

Debit Normal

Refers to accounts that are increased with a debit transaction and have a natural debit balance, such as assets, expenses, and losses.