Entity a Contributes to a Defined Benefit Superannuation Plan for Its

question 1

Multiple Choice

Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following: Current service cost 12,785
Interest cost 983
Expected return on plan assets (1,150)
Net actuarial gain recognised in period (1,835)
10,783
The $10,783 represents:

• A) The expense to be recognised in the income statement.
• B) The asset to be recognised in the balance sheet.
• C) The liability to be recognised in the balance sheet.
• D) The revenue to be recognised in the income statement.
• E) The cash flow pertaining to the contributions made for the period.

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Definitions:

Degrees of Freedom

The amount of free variables or measures that may change within an analysis while still adhering to all limitations.

T-statistic

A type of statistic used to estimate the significance of a difference between two sample means, given in terms of standard error.

Alpha

In statistical hypothesis testing, it represents the probability of committing a Type I error; the threshold significance level.

Critical Values

Thresholds in statistical hypothesis testing that determine the cutoff points for rejecting or not rejecting the null hypothesis.