Final answer:
The financial statements of retirement benefit plans do not include a statement of cash flows (a). These plans cover statements of net assets and changes in net assets as well as note disclosures, preferring a defined contribution structure like 401(k)s for their portability and inflation protection.
Step-by-step explanation:
The financial statements of a retirement benefit plan, whether a defined contribution plan or defined benefit plan, do not include a statement of cash flows. These plans typically include a statement of net assets available for benefits, a statement of changes in net assets available for benefits, and note disclosures.
Defined contribution plans like 401(k)s and 403(b)s are tax-deferred and provide portable benefits that employees can transfer if they change employers. Such plans have grown more common as they offer the potential for investments to generate real rates of return, protecting retirees from inflation, in contrast to some of the risks associated with traditional pension plans.