Select the Key Term That Relate to Accounting for Pension

question 52

Essay

Select the key term that relate to accounting for pension plans from the list that best matches with the following definition.
A. Agent multiple-employer pension plan
B. Cost-sharing multiple-employer pension plan
C. Covered payroll
D. Defined benefit plan
E. Defined contribution plan
F. Net pension liability
G. Service cost
H. Total pension liability
________ 1. A pension plan which specifies the amount or rate of contribution that the employer and employees must contribute to the members' accounts in the pension plan.
________ 2. The portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service.
________ 3. The portion of the actuarial present value of projected benefit payments that is attributed to the current year, interest on the total pension liability, benefit payments, and other changes to the total pension liability.
________ 4. The pension obligations of many employers are pooled and plan assets can be used to pay the benefits of the employees of any employer that provides pensions through the pension plan.
________ 5. Plan assets of numerous employers are pooled for investment purposes but accounts are maintained for the individual employer participants.

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Definitions:

Representation Gap

The discrepancy or disconnect between the interests and needs of workers and the extent to which they are represented or addressed within the workplace or through collective bargaining.

National Labor Relations Act

A foundational U.S. law enacted in 1935 that protects the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Global Marketplace

An integrated and interdependent worldwide economic trading environment in which goods, services, people, skills, and ideas move freely across national borders.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, given by an employer to an employee.