Pension Funds Whose Contributions Are Not Large Enough to Actually

question 74

Multiple Choice

Pension funds whose contributions are not large enough to actually cover the benefits to be paid out when all employees retire are termed

• A) divested.
• B) vested.
• C) unfunded,or underfunded.
• D) funded.
• E) None of the above.

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Definitions:

Spreadsheet Method

A technique utilizing spreadsheet software to organize, analyze, and manage data, often for budgeting, planning, and decision-making purposes.

Indirect Method

The indirect method is a way to calculate cash flow from operations by adjusting net income for changes in non-cash accounts and non-operating items.

Journal

The initial record in which the effects of a transaction are recorded.

Free Cash Flow

The cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.