Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 20 - Accounting for Pensions and Postretirement Benefits - Review and Practice - Questions - Page 1161: 4

Answer

As a noun, fund means cash accumulated and reserved in the coffers of a financial institution for a specific fund, e.g., a pensions fund with intention to issue pensions on retirement. On the other hand, as a verb, it means that it is a payment that has been made, e.g., an employer sending cash to a pension scheme to fund employees pension accounts.

Work Step by Step

As explained above.
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