Which of the Following Is Not an Element of Pensions

question 19

Multiple Choice

Which of the following is not an element of pensions and other postemployment benefits that is difficult to estimate?

• A)Projected lifetime of former employees that will receive a pension.
• B)The future earnings of employees prior to retiring for defined benefit plans.
• C)Long-term interest rates to discount future costs back to present value.
• D)Current amounts earned on pension plan assets.

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Definitions:

Tax Expense

The amount of taxation a company is required to pay to various tax authorities, based on its earnings.

SUTA Tax Payable

The liability owed by employers to the state for the State Unemployment Tax Act, used to fund unemployment benefits.

Payroll Tax Expense

Payroll Tax Expense is the employer's cost associated with the employment of staff, including taxes such as social security and Medicare taxes that must be paid based on salaries.

Wages Payable

A liability account representing the amount owed to employees for work performed but not yet paid.