In Accounting for a Defined-Benefit Pension Plan

question 28

Multiple Choice

In accounting for a defined-benefit pension plan

• A) The employer's responsibility is simply to make a contribution each year based on the formula established in the plan.
• B) The expense recognized each period is equal to the cash contribution.
• C) The liability is determined based upon known variables that reflect future salary levels promised to employees.
• D) An appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised

---

Definitions:

Profit Statement

A financial document detailing a company's revenues, expenses, and net profit over a specific period.

Corporate Social Responsibility

A concept where businesses integrate social and environmental concerns in their operations and interaction with stakeholders.

Corporate Sustainability

An approach by businesses to create long-term value by considering how they operate in the ecological, social, and economic environment.

Sustainability

The practice of maintaining processes or systems in ways that ensure they can continue indefinitely without depleting resources or harming the environment.