Which of the following is not descriptive of a defined benefit plan?
A) The pension expense account must be determined by actuarial calculations.
B) The employer guarantees the employee certain benefits upon retirement.
C) The accounting for annual pension expense is simple.
D) The annual contribution is based on estimated future benefits.

Question

Quizplus · Accepted Answer

Defined benefit plans require actuarial calculations to determine the pension expense account, provide guaranteed benefits to employees upon retirement, and base contributions on estimated future benefits. However, the accounting for annual pension expense can be complex due to the actuarial calculations involved.

Which of the Following Is Not Descriptive of a Defined