Which of the Following Is True About Defined Contribution Plans

question 54

Multiple Choice

Which of the following is true about defined contribution plans?

• A)They shift the investment risk to the employer.
• B)They present greater administrative challenges to employers.
• C)They promise a specific benefit level for employees upon retirement.
• D)They are preferred more in smaller companies than larger ones.
• E)They have become less common.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made.

Financial Statements

Consolidated records of the financial activities of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Temporary Accounts

Income statement (and sometimes Dividends Declared) accounts that are closed to Retained Earnings at the end of the accounting period.

Balance Sheet

A summary report of a company's financial position, including assets, liabilities, and the equity of its shareholders, at a distinct time.