________ Are an Accounting Measure of Performance During a Specific

question 81

Multiple Choice

________ are an accounting measure of performance during a specific period of time,while ________ is the actual inflow or outflow of money.

• A)Profits; cash flow
• B)Cash flows; profit
• C)Dividends; cash flow
• D)Profits; a dividend

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Definitions:

Pension Expense

represents the cost incurred by an employer for maintaining a retirement benefits plan for its employees over a specific period.

Defined Benefit Pension Plan

A type of pension plan where an employer promises a specified pension payment upon retirement, determined by an employee's earnings history, tenure of service, and age.

Interest Cost Component

The portion of pension expense that reflects the increase in the projected benefit obligation due to the passage of time.

Defined Benefit Pension Plan

A defined benefit pension plan is a retirement plan where the employer promises a specified pension payment upon retirement, based on an employee's earnings history, tenure of service, and age.