Question

In: Accounting

1.What is the difference between a Private Purpose fund and a Permanent fund? 2. What are...

1.What is the difference between a Private Purpose fund and a Permanent fund?

2. What are the major differences between the 2 types of pension plans?

short answer please

Solutions

Expert Solution

Answer-1-

Private Purpose Fund Permanent Funds
1-The purpose of a private purpose trust fund is to generate income to benefit individuals, private organizations or other governments. Whereas the purpose of a permanent fund is to provide income to benefit the government and its citizens.
2-Private purpose funds are accounted for on the accrual basis & the economic resource measurement focus. Whereas permanent funds are accounted using for using the modified accrual basis & the current financial resources management focus.

2-

Defined benefit plan

Defined contribution plan

A Defined Benefit pension plan promises to pay you a certain amount of retirement income for life. With a Defined Contribution plan, contributions are guaranteed, but retirement income is not.
Your employer is responsible for investing the contributions to ensure there’s enough money to pay the future pensions for all plan members. You are responsible for investing all contributions to grow your savings. In this way, the plan is similar to an RRSP.

Related Solutions

What is the difference between Permanent Funds and Private Purpose Trust Funds? The General Fund is...
What is the difference between Permanent Funds and Private Purpose Trust Funds? The General Fund is always considered to be a major fund. When are other governmental funds considered major? What is a bond refunding and why do governments refund bonds? What is the difference between a current refunding and advance refunding? cite source
CT3: Please answer the following: 1) What is the difference between Permanent Funds and Private Purpose...
CT3: Please answer the following: 1) What is the difference between Permanent Funds and Private Purpose Trust Funds? 2) The General Fund is always considered to be a major fund. When are other governmental funds considered major? 3) What is a bond refunding and why do governments refund bonds? 4) What is the difference between a current refunding and advance refunding?
1. What is the difference between public and private placement of securities? ( 2 paragraphs) 2....
1. What is the difference between public and private placement of securities? ( 2 paragraphs) 2. What were the ramifications of the repeal of the Glass-Stegal Act?  Why are some parties trying to reinstate it? ( 2 paragraphs)
1. Give examples of permanent fund. What characteristics classify them as permanent funds? 2. Give examples...
1. Give examples of permanent fund. What characteristics classify them as permanent funds? 2. Give examples of state CAFR that report permanent funds. What categories do the states report as permanent funds? 3. What is the difference between an enterprise fund and a permanent fund? 4. Give examples of special assessments. Why are they considered special assessments? 5. Give examples of state CAFR that report enterprise funds and internal service funds. What categories do the states report as enterprise funds...
what is the difference between a temporary and a permanent difference, with regards to income tax...
what is the difference between a temporary and a permanent difference, with regards to income tax reporting? Please provide an example of each of these in your response. Thank you
1. What is the difference between private and social costs? 2. How can the government intervene...
1. What is the difference between private and social costs? 2. How can the government intervene to force consumers to internalize external costs associated with: a. negative externalities? b. positive externalities? 3. Differentiate between a public good and common resources. 4. What are the advantages of a flat tax system?
What is the difference between private and public law? What is the difference between secular law...
What is the difference between private and public law? What is the difference between secular law and sacred law? Explain and give examples for each question. How far back can law be traced and what documents were used as legal examples?
What is a private-purpose trust fund? There are two types of assets that can be held...
What is a private-purpose trust fund? There are two types of assets that can be held by a private-purpose trust; what are the two types of assets and how do the asset types compare to governmental permanent fund assets?
1. A common difference between proscenia and masking is … 1. Proscenia is permanent and masking...
1. A common difference between proscenia and masking is … 1. Proscenia is permanent and masking is usually semi permanent 2. Proscenia is semi permanent and masking is usually permanent 3. Proscenia and masking as just two names for the same thing 4. Proscenia primary use is in department stores and masking is mainly used in boutiques 5. Both a and d are common differences between proscenium and masking 2.    Which of the following items would probably be least...
state the difference between a temporary and permanent ostomy?
state the difference between a temporary and permanent ostomy?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT