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 statements regarding defined contribution plans is FALSE?

The employer's obligation is limited to making specified contributions to the plan.

The employer guarantees a specific retirement benefit amount to the employee.

Plan assets are typically held in a separate trust for the benefit of employees.

The employee bears the investment risk associated with the plan assets.

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Verified step by step guidance

Understand the concept of a defined contribution plan: In a defined contribution plan, the employer contributes a specified amount to the employee's retirement account, but does not guarantee the final benefit amount. The retirement benefit depends on the investment performance of the plan assets.

Analyze the employer's obligation: The employer's obligation is limited to making the specified contributions to the plan, and they do not guarantee a specific retirement benefit amount. This is a key characteristic of defined contribution plans.

Examine the role of plan assets: Plan assets are typically held in a separate trust for the benefit of employees. This ensures that the funds are safeguarded and used solely for the employees' retirement benefits.

Evaluate the investment risk: In a defined contribution plan, the employee bears the investment risk. This means that the final retirement benefit depends on how well the investments perform, and the employer is not responsible for any shortfall.

Identify the false statement: Based on the characteristics of defined contribution plans, the false statement is 'The employer guarantees a specific retirement benefit amount to the employee,' because the employer does not guarantee the final benefit amount in such plans.