Which of the following describes defined benefit pension plans

Which of the following describes defined benefit pension plans

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Which of the following describes defined benefit pension plans? a. a. The investment risk is borne by the employee. b. b. The plans are simple and easy to construct. c. c. The investment risk is borne by the employer. d. d. Retirement benefits depend on the individual's account balance. Save Answer 2. (Points: 10) The employer has an obligation to provide future benefits for: a. a. Defined benefit pension plans. b. b. Defined contribution pension plans. c. c. Defined benefit and defined contribution plans. d. d. None of these. Save Answer 3. (Points: 10) Interest cost will: a. a. Increase the PBO and increase pension expense. b. b. Increase pension expense and reduce plan assets. c. c. Increase the PBO and reduce plan assets. d. d. Increase pension expense and reduce the return on plan assets.
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Save Answer 4. (Points: 10) Payment of retirement benefits: a. a. Increases the PBO. b. b. Increases the ABO. c. c. Reduces the GBO. d. d. Reduces the PBO. Save Answer 5. (Points: 10) The following information pertains to Havana Corporation's defined benefit pension plan: At the end of 2009, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2009 service cost for Havana's plan? a. a. $276 thousand b. b. $528 thousand c. c. $648 thousand d. d. Cannot be determined from the given information
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Save Answer 6. (Points: 10) The following information pertains to Havana Corporation's defined benefit pension plan: At the end of 2009, Havana contributed $696 thousand to the pension fund and benefit payments of $624 thousand were made to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is Havana's 2009 actual return on plan assets? a. a. $504 thousand b. b. $618 thousand c. c. $1,128 thousand d. d. None of these is correct Save Answer 7. (Points: 10) Mars Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $7,200. The discount rate applied by the actuary was 8%. What was the beginning PBO? a. a. $ 90,000. b. b. $100,000. c. c. $107,200. d. d. $112,000. Save Answer
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8. (Points: 10) An overfunded pension plan means that the: a. a. PBO is less than plan assets. b. b. PBO exceeds plan assets. c. c. ABO is less than plan assets. d. d. ABO exceeds plan assets. Save Answer 9. (Points: 10) Pension expense is decreased by: a. a. Amortization of prior service cost. b. b. Amortization of net gain. c. c. Benefits paid to retired employees. d. d. Prior service cost. Save Answer 10.
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