Question

Which of the following items should be included in the pension expense computation for a defined-benefit plan?

a. Both expected return of plan assets and amortization of prior service cost
b. Expected return of plan assets, but not amortization of prior service cost
c. Amortization of prior service cost, but not expected return of plan assets
d. Neither expected return of plan assets nor amortization of prior service cost

Answer 1

The answer is A


Step-by-step explanation:

Answer 2

Option A

Step-by-step explanation:

In simple words, Pension expense notes the employer 's yearly cost of sustaining the individual employee pension scheme. Businesses who have a pension fund must measure and record the benefits and obligations of the programme on the financial statements.

In order to measure the benefit bill, the company must record the operation and tax rates, the estimated return on the value of the scheme, the amortisation of the value of the former contract and the results of the profits and declines.