Answered: Under a noncontributory plan, only the…

Business

Accounting

Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan. a. TRUE b. FALSE

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 7Q

See similar textbooks

Related questions

Q: WHAT IS THE CORRECT JOURNAL ENTRY WHEN WITHHOLDING AN EMPLOYEE'S CONTRIBUTION TO A PENSION PLAN?

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Which of the following is not a characteristic of a defined-contribution pension plan? The…

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

Q: The employer has an obligation to provide future benefits for: A. Defined benefit pension…

A: Defined benefit and defined contribution are the retirement pension plan

Q: The Employee Retirement Income Security Act (ERISA) requires that companies fund defined-benefit…

A: The post-retirement benefits will be benefits, other than annuity disseminations, paid to…

Q: Which of the following factors is least likely to affect the amount of retirement benefits under a…

A: Defined benefit pension plans are the retirement designs that include providing a fixed and…

Q: es a SIMPLE IRA have a matching contribution from the employer to the employee? Yes or No.

A: Simple IRA refers to the savings incentive match plan for the employees of the company which is a…

Q: A pension asset is reported when

A: Answer: Pension asset is defined as the asset that is created due to pension plan for purpose of…

Q: Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan.…

A: Under a non contributory pension or defined benefits plan, only an employer contributes and no…

Q: 1. Plans qualifying for preferential tax treatment must meet minimum participation and vesting…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following is not considered by an actuary when determining the annual contribution to a…

A: The correct answer with explanations are as follows.

Q: true or false The balance of FVPA would be zero if the employer has no fund set aside for the…

A: Fair value of plan assets or FVPA is referred as the fair value of an invested funds for making the…

Q: ification fo

A: Employees working with an entity for a specific number of years are eligible for retirement…

Q: Which type of pension plan would you prefer to be covered under (i.e., defined benefit, defined…

A: In this there are many types of pension plans available and each have own characteristics.

Q: 37. The relationship between the amount funded and the amount reported for pension expense is as…

A: The relationship between the amount funded and the amount reported for pension expense is as follows

Q: 1 a. Briefly describe how are pension gains and losses recognized. b. Explain what are pension…

A: Pension gain and losses arise due to change in the underlying assumptions which affect the total…

Q: Carson Company sponsors a single-employer defined benefit pension plan. The plan provides that…

A: Answer 1: Two accounting challenges are as followes: Cash payments: The payments under these plans…

Q: What is not an option for splitting an employer sponsored pension plan? a. Valuation and sharing in…

A: Transfer Tax- Transfer tax refers to the tax when the ownership of the property is transferred from…

Q: A Defined Benefit Plan defines the following: O A. Your (employee) contributions to the plan O B.…

A: The employees work for an employer in exchange for a fixed salary per month, but the government has…

Q: What two components of pension expense may be negative (i.e., reduce pension expense)?

Q: Under RA 7641, which is a correct requirement in order that a retirement benefit shall be excluded…

A: The retirement pay may include pension and other benefits which are subject to tax. But this payment…

Q: How should gains or losses related to pension plan assets be recognized? How does this treatment…

Q: A pension plan is underfunded when the employer’s obligation (PBO) exceeds the resources available…

A: Projected benefit obligation (PBO): This is the estimated present value of future retirement…

Q: true or false individual that receive certain types of pension income under the registered pension…

A: SOLUTION- RRSP IS REGISTERED RETIREMENT SAVING PLAN WHICH IS CREATED BY MAKING CONTRIBUTION FROM…

Q: Under a qualified pension plan, I. the yearly earnings on the pension plan assets are taxable income…

A: Introduction Pension plan assets are defined as the assets bought using contributions from pension…

Q: Pension benefits contributed by the employer affects both the projected benefit obligation and…

A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at…

Q: b. How does each component of pension expense affect pension expense during the period (increase,…

A: b) The components of pension expense are:- i. Service Cost - The increase in the projected pension…

Q: Which of the following correctly describes defined benefit (DB) pension plans? A-A typical example…

A: Defined benifit is also written as DB. It is the pension plan in which the employee will receive the…

Q: Under a nonqualified pension plan, I. the yearly earnings on the pension plan assets are taxable…

A: Non qualified Pension Plan are Non qualified because it does not comply with Employee Retirement…

Q: The calculation used by social security to calculate retirement benefits is meant to replace a(n

A: Social Security: The social security benefits mean those payments that are made to the retirees…

Q: panies fund defined-benefit plans, but no such requirement exists for other pos

A: The Employee Retirement Income Security Act of 1974 (ERISA) may be a federal law that sets minimum…

Q: In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain…

A: A defined benefit plan is the plan which is contributed by the employer on behalf of the employee to…

Q: Distinguish between defined contribution and defined benefit pension plans. Justify the employer's…

A: The Answer :

Q: S1: Under a defined contribution plan, the amount of a participant’s future benefits is determined…

A: As per IAS 26 Accounting and Reporting by Retirement Benefit Plan the two given statements are of…

Q: In a defined contribution plan, a formula is used that: O Requires an employer to contribute a…

A: Defined contribution plans are funded by the employees and the amount if collected for their…

Q: A defined-contribution plan specifies the benefits the employee will receive at the normal…

A: Defined Contribution Employer Contributes specific periodic amounts of contribution to the plan…

Q: 34. In a defined-contribution plan, a formula is used that defines the benefits that the employee…

A: The defined contribution plan is strategized to benefit the employees during the time of retirement.…

Q: It refers to a plan where only the employer contributes to a retirement fund. a. Contributory plan…

A: RETIREMENT FUNDS: These are the investment options that allow…

Q: Which of the following income is taxable? * A. Proceeds of life insurance policy paid to the heirs…

A: The taxable income is the income that is included while calculating the tax for the company or…

Q: How does accounting for postretirement benefits similar in most respects to accounting for pension…

A: Pension plan: This is the plan devised by corporations to pay the employees an income after their…

Q: A Keogh plan is a type of qualified pension plan for self-employed individuals. An individual or…

A: A Keogh plan is described as a type of retirement plan for individuals who are self-employed and…

Q: 8. Which of the following is a characteristic of a defined benefit plan? Post-employment benefits…

A: 8. Defined benefit plan is a plan designed to assure the employee certain benefit after his…

Q: 35. In a defined-benefit plan, a formula is used that defines the contribution the employer is to…

A: solution concept defined-benefit plan defined-benefit plan is a plan where the benefit…

Q: What is meant by “prior service cost”? When is prior servicecost recognized as pension expense?

A: Prior service cost: The change in the amount of projected benefit due to changes in the act or rules…

Q: Social Security System (SSS) contributions are required from the individuals who are employed in the…

A: Social Security System(SSS) provides death, funeral, maternity leave, permanent disability,…

Question

Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan.

a. TRUE

b. FALSE

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Employee Retirement Income Security Act (ERISA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan. True or false?
It refers to a plan where only the employer contributes to a retirement fund. a. Contributory plan b. Non-contributory plan c. Unfunded plan d. Libreko plan
true or false The balance of FVPA would be zero if the employer has no fund set aside for the retirement benefits of the employees.
What is not an option for splitting an employer sponsored pension plan? a. Valuation and sharing in determination of equalization payment b. Cash in and split after-tax proceeds c. Deferred Benefits split at normal retirement age d. Transfer to spouse's plan such as LIRA or company pension
In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. b. requires that pension expense and the cash funding amount be the same. c. defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. d. defines the benefits that the employee will receive at the time of retirement.
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.
The employer has an obligation to provide future benefits for: A. Defined benefit pension plans. B. Defined contribution pension plans. C. Defined benefit and defined contribution plans. D. None of these answer choices are correct
true or false individual that receive certain types of pension income under the registered pension plan (rrsps, rrifs) or social assistance benefits(oas,cpp) are not required to include to the income on their net income for tax purpose
In a defined contribution plan, a formula is used that: Ensures that pension expense and the cash funding will be different Requires an employer to contribute a certain sum each period based on the formula Defines the benefits that the employee will receive at the time of retirement Ensures that the employer is at risk to make sure funds are available at retirement
Which of the following does not describe a defined contribution plan? The employer bears the risk of investment in a defined contribution plan. The contribution is certain but the benefit is uncertain. If the plan does poorly, the employee will share in the loss by paying more contributions. The accumulated fund on the date of an employee’s retirement determines the benefit.
What is meant by past service cost? When is past service cost recognized as pension expense? Differentiate between a defined contribution pension plan and defined benefit pension plan. Explain how the employer’s obligation differs between the two types of plans. What disclosures should be made by lessees and lessors related to future payments?
Contributions of the employer for the benefit for the benefit of the employee to retirement, insurance and hospitalization benefit plan is subject to the fringe benefit tax. TRUE OR FALSE?