Which of the Following Statements About Pension Plans If Any

question 3

Multiple Choice

Which of the following statements about pension plans if any, is incorrect?

• A) under a defined benefit plan, the employer agrees to give retirees a specifically defined benefit, such as $500 per month or 50 percent of the employee's final salary.
• B) a portable pension plan is one that an employee can carry from one employer to another.
• C) an employer's obligation is satisfied under a defined contribution plan when it makes the required contributions to the plan. the risk of inadequate investment returns is borne by the employee.
• D) if assets exceed the present value of benefits, the pension plan is fully funded.
• E) a defined contribution plan is, in effect, a savings plan that is funded by employers, although many plans also permit additional contributions by employees.

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Definitions:

Cost of Goods Sold

The immediate expenses related to the manufacture of goods a company sells, which includes materials and labor.

Freight-In

The cost associated with transporting goods into a place of business, usually considered part of the inventory cost.

Credit Sales

Transactions where goods or services are sold by a business and payment is received at a later date.

List Prices

List prices refer to the advertised or official price of a product before any discounts or reductions are applied.