The Key Elements of a Defined Benefit Pension Plan Include

question 219

Multiple Choice

The key elements of a defined benefit pension plan include all of the following except:

• A) The pension expense.
• B) The plan assets.
• C) Amortized future benefits.
• D) The employer's obligation.

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Definitions:

Semiannual Interest

Interest calculated and paid twice a year, often related to bonds or loans with fixed interest rates.

Straight-line Method

A technique for computing depreciation or amortization that evenly divides the asset's cost over its expected lifespan.

Bond Liability

An obligation or debt represented by bonds issued by a company, which it is required to repay at a specified time with interest.