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Problem 1: Which of the following statements concerning accrued benefits in qualified plans is (are) correct?
I. In a defined benefit plan, the participant's accrued benefit at any point is the participant's present account balance. The accrual for the specific year is the amount contributed to the plan on the employee's behalf for that year.
II. In a defined contribution plan, the accrued benefit is the benefit earned to date, using current salary and years of service. The accrued benefit earned for the year is the additional benefit that has been earned based upon the current year's salary and service.
Financial Statement Analysis and Preparation
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