Which of the Following Is Not True About Post-Retirement Benefits

question 18

Multiple Choice

Which of the following is not true about post-retirement benefits?

• A)Post-retirement costs should be recognized as expense as the workers earn the right to receive the benefits.
• B)Most corporations have fully funded their post-retirement benefits.
• C)Unfunded post-retirement costs are a non-cash expense.
• D)A corporation's liability for post-retirement benefits is equal to the present value of estimated future payments.

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Definitions:

Creative Destruction

A process in capitalism described by economist Joseph Schumpeter, where outdated products, technologies, or companies are replaced by new innovations.

Railroads

A means of transport consisting of rails, typically on tracks, over which trains travel to carry goods or passengers.

Monopoly Position

A situation in which a single company or entity exclusively controls a significant portion of the market for a particular product or service.