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Defined benefit pension plan vs defined contribution plan which one is not true? A. Defined contribution...

Defined benefit pension plan vs defined contribution plan which one is not true?

A. Defined contribution plan cant be overfunded/underfunded

B. Defined benefit plans have separate statements, and a defined contribution plan does not have separate financial statements

C.None of above

.

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Answer #1

The correct answer is Option B - Defined benefit plans have separate statements, and a defined contribution plan does not have separate financial statements. This statement is not true because Defined contribution plan does have separate finiancial statements. Hence, this is the correct answer.

Option A is incorrect as this statement is true. Defined Contribution plan cant be overfunded/underfunded because the amount of contributions are pre-determined and as such would not be overfunded/underfunded.

Option C is incorrect as we have the answer at Option B.

Please let me know if you have any questions via comments and all the best :) !

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