ACCT 302 Key PASSED Exam Questions and CORRECT Answers

Q 20.1: Which of the following explains the difference between a contributory pension plan and a noncontributory pension plan? A : In contributory plans, employees bear part of the cost of stated benefits or voluntarily make payments to the plan, whereas the costs of noncontributory plans are borne by the employER. B : In a contributory plan contributions are made, but in a noncontributory plan no contributions are made. C : In contributory plans, employers bear part of the cost of stated benefits or voluntarily make payments to the plan, whereas the costs of noncontributory plans are borne by the employEE. D : Contributory plans tend to be fully funded, whereas noncontributory plans are based on "pay-as-you-go" funding.A. In contributory plans, employees bear part of the cost of stated benefits or voluntarily make payments to the plan, whereas the costs of noncontributory plans are borne by the employer