Which Statement About "Defined Contribution Plans" Is Correct

question 31

Multiple Choice

Which statement about "defined contribution plans" is correct?

• A)Pension expense equals the contributions made based on the plan formula.
• B)Pension expense equals the present value of the future benefits to be paid to the retiree.
• C)Pension cost cannot be capitalized to the cost of inventory.
• D)Pension cost may not be capitalized to the construction cost of property,plant and equipment.

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Definitions:

Modern-Day Mammals

Contemporary species of the mammalian class, characterized by features such as hair, three middle ear bones, and mammary glands for feeding young.

Paleontologists

Scientists who study the history of life on Earth through the examination of fossilized remains and traces of organisms.

Carbon Dating

A method used to determine the age of an object containing organic material by measuring the decay rate of carbon-14 isotopes.

Rock Layers

Strata or beds of sedimentary rock that have been deposited over time, providing clues to Earth's geological history.