A pension granted to any past president or vice-president shall be charged to the

Assessment: JAMB UTME - Principles of Accounts - 2007 Subject: Financial Accounting

Question 1 Report

A pension granted to any past president or vice-president shall be charged to the
Answer Details
A pension granted to any past president or vice-president is a payment made to these individuals after they have left office. The source of funding for these pensions is outlined in the constitution of the country. In many countries, including Nigeria, the constitution stipulates that pensions for past presidents or vice-presidents should be charged to a special pension fund. This fund is set up specifically to provide for the payment of these pensions. Therefore, the correct answer to the question is a special pension fund.

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