Which of the Following Statements Is True of Defined Benefit

question 18

Multiple Choice

Which of the following statements is true of defined benefit pensions?

• A)They are much more common than defined contribution plans.
• B)They provide specified monthly payments upon retirement.
• C)They are less expensive to manage from the employer's perspective.
• D)They shift the risk from employer to employee.

---

Definitions:

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes, interest, and operating expenses, from total revenue.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a business needs to purchase to meet its sales goals and maintain inventory levels.

Expected Cash Collections

The projected amount of cash a company anticipates to receive from customers over a specific period.