If an Employer Were to Account for a Defined Benefit

question 15

Multiple Choice

If an employer were to account for a defined benefit pension plan on the cash basis, it would be a violation of the

• A) going-concern assumption.
• B) accrual concept.
• C) separate entity concept.
• D) historical accounting.

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Definitions:

Price

The payment magnitude expected, called for, or compensated in exchange for something.

Law of Demand

A principle stating that all else being equal, as the price of a good or service increases, the quantity demanded decreases, and vice versa.

Inverse Relationship

A relationship between two variables in which one variable increases as the other decreases.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level.