In a Defined Benefit Pension Plan, the ________ Bears All

question 63

Multiple Choice

In a defined benefit pension plan, the ________ bears all of the fund's investment performance risk.

• A) employer
• B) employee
• C) fund manager
• D) government

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Definitions:

Increases

A rise in the value or quantity of something, such as assets, revenue, or profits.

Recorded By Debits

Transactions in accounting that increase assets or expenses and decrease liabilities, equity, and revenue, captured on the left side of an account.

Decreases

A reduction in the quantity, level, or intensity of something, such as expenses, assets, or liabilities.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage extending beyond the current accounting period.