Free CTP Exam Braindumps (page: 7)

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For a defined benefit plan,

  1. plan assets equal plan liabilities.
  2. plan assets can be less than plan liabilities.
  3. plan assets are greater than plan equity.
  4. plan assets always equal plan equity.

Answer(s): B



A public corporation may value a defined contribution plan highly because it:

  1. allows the corporation to capture plan investment surpluses.
  2. allows proxy voting in favor of management.
  3. shifts investment shortfall risk to employees.
  4. defines allowed investments within the plan.

Answer(s): C



Which of the following is MOST LIKELY to have a significant impact on the financial condition of an organization?

  1. Defined benefit pension plans
  2. Defined contribution pension plans
  3. 401(k) plans
  4. Tax-deferred annuities

Answer(s): A



Company XYZ is now required to make electronic payments by its suppliers. To prevent an increase in costs, the company should.

  1. negotiate a change in payment timing with its suppliers.
  2. institute a just-in-time inventory system.
  3. negotiate a change in cash disbursement with its concentration bank.
  4. institute a modified RSA system for its inventory.

Answer(s): A






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