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1 point Select the correct answer In defined contribution pension plans, pension payments depend on final salary. In defined benefit pension plans, investment risk is
1 point Select the correct answer In defined contribution pension plans, pension payments depend on final salary. In defined benefit pension plans, investment risk is born by the plan participants In defined benefit pension plans the long-term pension liability on the balance sheet is virtually zero. In defined benefit pension plan, the size of pension payments depend on years of service In defined contribution pension plans, the sponsoring company bears the investment risk. 2 1 point Select the correct answer The PBO decreases with the expected growth in salary The ABO is the present value of pensions payments assuming current salary The ABO is generally larger than the PBO Pension plan assets are recognized as an asset on the sponsoring company's balance sheet The difference between the PBO and Plan Assets is always recognized as a long term liability on the sponsoring company's balance sheet 3 1 point Select the correct answer The pension expense in the P&L reduces taxable income in the United States Contributions to an approved plan could be deducted from taxable income in the United States The larger between the P&L pension expense and the pension contributions to an approved plan are deducted from the taxable income in the United States Pension payments from the plan reduce the PBO and are tax-deductible in the United States Answers (B) and (D) are correct
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