Which of the Following Is Not Descriptive of a Defined

question 181

Multiple Choice

Which of the following is not descriptive of a defined benefit plan?

• A) The pension expense account must be determined by actuarial calculations.
• B) The employer guarantees the employee certain benefits upon retirement.
• C) The accounting for annual pension expense is simple.
• D) The annual contribution is based on estimated future benefits.

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Definitions:

Nitrate

A compound containing nitrogen and oxygen, commonly found in fertilizers, and can lead to environmental concerns such as water pollution and eutrophication when present in high levels.

Phosphate

A salt or ester of phosphoric acid, commonly used in fertilizers, detergents, food additives, and for water treatment.

Degradable Wastes

Wastes that can break down into less harmful components over time through biological processes.

Dissolved Oxygen

The amount of oxygen gas dissolved in water, essential for the respiration of aquatic life.