Which of the following is not a criticism of pension accounting and reporting?

A. Some argue that operating income is misstated due to the deduction of pension expense.
B. Management has the discretion with respect to choosing the expected rate of return on plan assets.
C. Some argue that service cost should be the only component of pension expense.
D. Net income immediately includes fund asset gains and losses, as well as projected benefit obligation actuarial gains and losses.


Answer: D

Business

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