Which of the following types of pension plan will provide benefits that are dependent on the return on the investment of contributions? Defined benefit plan. Defined contribution plan. Undefined benefit plan. All of these choices.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7MC: Which of the following is not a component of pension expense? a. amount funded b. service cost c....
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 Which of the following types of pension plan will provide benefits that are dependent on the return on the investment of contributions?

  1. Defined benefit plan.
  2. Defined contribution plan.
  3. Undefined benefit plan.
  4. All of these choices.
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Step 1

Defined Contribution Plan

Defined contribution plan which allows the employees and the employer to invest fixed / certain percentage to the investment plan and  the return of these benefits which can be used for retirement benefit to the employees as well.  

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