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6. All of the following increase pension expense except: a. Service cost b. Actual return on plan asset Prior service cost amortization All of the

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6. All of the following increase pension expense except: a. Service cost b. Actual return on plan asset Prior service cost amortization All of the above c. d. All of the following affect projected benefit obligations except; a. Service cost b. Prior service cost amortization c. Prior service cost creation establishment) d. Benefit paid 7. Which one of the followings affeets both projected benefit obligations and plan assets? a. Service cost b. Contribution c. Benefit paid d. None of the above 8. A company adopts its pension plans this year for the first time so it creates 9. (eestablisbhes) prior service cost. The creation (establishmcnt) of prior service cost leads to: a. An increase in Equity b. An increase in Asset c. A decrease in Equity d. A decrease in Asset 10. Amortization of prior service cost leads to: a. A decrease in Asset b. A decrease in Liability c. A decrease in Equity d. None of the above In the Pension worksheet, the expected rate of return is used in computing: a. Actual return of pension b. Expected interest of projected benefit obligation c. Amortization of prior service d. Gain/Loss 11

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