Sparrow Pension Plan Is a Not-For-Profit Organization That Administers the Pension

question 4

Multiple Choice

Sparrow Pension Plan is a not-for-profit organization that administers the pension fund held for the employees of Sparrow Tech Ltd. What type of fund is the pension fund?

• A)Reserve fund
• B)Self-sustaining fund
• C)Fiduciary fund
• D)Endowment fund

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Definitions:

Probable Loss

An anticipated financial loss that has a greater than 50% chance of occurring, often recognized in financial statements in accordance with accounting principles.

Estimable Loss

A projected financial loss that can be anticipated and measured with reasonable accuracy.

Financial Statement Disclosure

The provision of information in a company's financial statements beyond the basic financial numbers, aimed at giving a complete understanding of the company's financial health.

Lawsuit Loss

Financial loss recognized by a company due to legal judgments or settlements in lawsuits.