A Defined-Contribution Plan Has an Individual Account for Each Employee;

question 7

True/False

A defined-contribution plan has an individual account for each employee; therefore,these plans are also called individual account plans.

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Definitions:

Note Receivable

A note receivable is a financial asset representing a written promise to receive a specific amount of money, with interest, from another party by a certain date.

Percent of Sales Method

A financial analysis tool used to forecast future expenses or accounts such as bad debts, based on a percentage of sales.

Bad Debts Expense

Represents the amount of accounts receivable a business does not expect to collect and charges off as a loss in its financial statements.

Net Credit Sales

The total revenue from sales made on credit minus any returns or allowances.