Deferred Compensation Refers to Methods of Compensating Employees Based Upon

question 1888

True/False

Deferred compensation refers to methods of compensating employees based upon their current service where the benefits are deferred until future periods.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Payment Stream

Payment stream refers to a series of payments made over time, such as in an annuity, loan repayments, or any regular monetary transfers.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Present Value

The present value of a future amount of money or a series of cash flows, discounted at a given rate of return.