The Accounting for Defined Contribution Pension Plans Is Easy Because

question 235

Multiple Choice

The accounting for defined contribution pension plans is easy because each year:

• A) The employer records pension expense equal to the amount paid out to retirees.
• B) The employer records pension expense based on an amount provided by the actuary.
• C) The employer records pension expense equal to the annual contribution.
• D) The employer records pension expense based on the earnings of the plan assets.

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Definitions:

Vulnerabilities

Weaknesses or flaws in a system that can be exploited to compromise its security or functionality.

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the paying account but have not yet been cashed or cleared by the bank.

Bank Statement Adjustment

The act of reconciling the bank statement balance with the book balance by accounting for items that cause discrepancies between the two.

Company Books Adjustment

Modifications made to accounting records, such as correcting errors or updating entries based on new information, to ensure accuracy and compliance.