Which of the Following Statements Concerning Defined Contribution Pension Plans

question 30

Multiple Choice

Which of the following statements concerning defined contribution pension plans is (are) true?
I.The contribution rate is fixed.
II.The retirement benefit varies.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Credit Side

The right side of an accounting ledger where credits are recorded, typically increasing liabilities and equity or decreasing assets.

Expenses

The money spent or costs incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Withdrawals

Funds taken out from a business by its owner(s) for personal use.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account.