Which of the following is not a characteristic of a defined-contribution pension plan?The employer's contribution each period is fixed.If the employer does not make contribution in full, then it reports a pension liability. If the employer contributes more than the required amount, then it reports a pension asset.An appropriate funding pattern must be established to ensure that the promised benefits at employees’ retirement will be met.The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.

Contribution pension plan is a retirement plan in which both the employer and the employee…

Answered: Which of the following is not a…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

Section: Chapter Questions

Problem 8Q

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Which of the following is not a characteristic of a defined-contribution pension plan?

The employer's contribution each period is fixed.
If the employer does not make contribution in full, then it reports a pension liability. If the employer contributes more than the required amount, then it reports a pension asset.
An appropriate funding pattern must be established to ensure that the promised benefits at employees’ retirement will be met.
The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.

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