Which of the Following Statements Is Not Correct

question 80

Multiple Choice

Which of the following statements is not correct?

• A)The U.S.income tax code influences pension fund contributions.
• B)The U.S.income tax code creates incentives for firms to overfund their pension plans.
• C)The earnings from pension fund investments are taxable to the pension plan sponsor.
• D)Firms with larger union memberships tend to have higher pension funding ratios.

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Definitions:

Installment Sales

A sales method allowing customers to make payments over a period of time until the full price is paid.

Gross Profit

A company's total revenue minus its cost of goods sold, indicating the basic profitability of its products or services.

Interest Payments

the regular payments made by a borrower to a lender, typically a percentage of the outstanding debt, as compensation for the loan or credit provided.

Deferred Gross Profit

The portion of gross profit that is not recognized in the current period due to installment sales or revenue recognition policies.