Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is NOT an example of a defined contribution plan?

403(b) plan

Profit-sharing plan

Pension plan with a guaranteed benefit formula

401(k) plan

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Verified step by step guidance

Understand the difference between a defined contribution plan and a defined benefit plan. A defined contribution plan specifies the amount of contributions made by the employer and/or employee, but the final benefit depends on the investment performance. Examples include 401(k), 403(b), and profit-sharing plans. A defined benefit plan, on the other hand, guarantees a specific benefit amount upon retirement, regardless of investment performance.

Review the characteristics of each plan mentioned in the question: 403(b) plan, profit-sharing plan, pension plan with a guaranteed benefit formula, and 401(k) plan.

Identify that a 403(b) plan is a type of defined contribution plan typically offered by non-profit organizations, where contributions are made to individual accounts.

Recognize that a profit-sharing plan is also a defined contribution plan, where employers contribute a portion of their profits to employees' retirement accounts.

Note that a pension plan with a guaranteed benefit formula is a defined benefit plan, as it guarantees a specific retirement benefit based on factors like salary and years of service. This makes it the correct answer to the question, as it is NOT a defined contribution plan.