Question
1) The interest component included in pension expense for a defined-benefit pension plan represents the Select one: shortage between the expected and actual returns on
1) The interest component included in pension expense for a defined-benefit pension plan represents the
Select one:
shortage between the expected and actual returns on plan assets.
increase in the projected benefit obligation due to the passage of time.
increase in the fair value of plan assets due to the passage of time.
amortization of the discount on accumulated OCI (PSC).
2)
Frank has accepted a new job which gives him the choice between a defined-benefit and a defined contribution plan. Which of the following is not a characteristic of a defined-contribution pension plan?
Select one:
The benefits to be received by employees are determined by an employees highest compensation level defined by the terms of the plan.
The employer's contribution each period is based on a formula.
The accounting for a defined-contribution plan is straightforward and uncomplicated.
The benefit of gain or the risk of loss from the assets contributed to the pension fund is borne by the employee.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started