Which of the following is not true regarding the accounting for defined contribution plans?
a. When pension assets equal pension liabilities and the expected rate of return on pension investments equals the discount rate used to compute the projected benefit obligation, the amounts offset each other.
b. When the interest cost exceeds the expected return on pension investments, either employer contributions or future earnings on pension plan investments must make up the difference.
c. Computing pension expense (or credit) using the expected return (not the actual return) rests on the view that pension plans should take a long-term perspective and generate earnings from investments based on a long-term expected rate of return.
d. Annual deviations from the long-term expected rate of return should flow through to net income as they occur.
e. Recognizing service cost as an increase in the pension expense parallels inclusion of wage and salary costs as an expense.
D
You might also like to view...
Officer Jones is a policeman on a foot patrol. When he passes a group of three students, he smells what he believes to be the odor of marijuana even though he does not see any of the three students actually possessing it. He may conduct a limited pat-down search of the three students to determine whether any have marijuana on their person.
Answer the following statement true (T) or false (F)
Customer relationship software allows bank service representatives to determine quickly which types of accounts, loans, and credit cards a customer currently has. With this information, the service representative can determine what other bank services that same customer could potentially enroll in or purchase. This growth strategy is known as
A. product development. B. market penetration. C. diversification. D. product proliferation. E. market development.
A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.
Answer the following statement true (T) or false (F)
A joint tenant cannot transfer his or her rights by sale or gift without the consent of the other joint tenants
Indicate whether the statement is true or false