In accounting for a defined-benefit pension plan nbspa an


In accounting for a defined-benefit pension plan

a. An appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised. 

b. The employer's responsibility is simply to make a contribution each year based on the formula established in the plan. 

c. The expense recognized each period is equal to the cash contribution. 

d. The liability is determined based upon known variables that reflect future salary levels promised to employees.

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Finance Basics: In accounting for a defined-benefit pension plan nbspa an
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