Which of the Following Characteristics Describes a Defined Benefit Plan

question 20

Multiple Choice

Which of the following characteristics describes a defined benefit plan?

• A) Subject to PBGC plan termination insurance rules.
• B) An account for each participant is not established.
• C) Defines the amount the employer is required to contribute.
• D) Only a. and b.
• E) a., b., and c.

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where the first items placed in inventory are the first sold.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the basic profit from buying and selling goods or services.

LIFO Method

Last In, First Out method; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.

Rising Prices

An economic condition characterized by an increase in the cost of goods and services over time, affecting purchasing power.