If a Company Estimates That Its Expected Return on Pension

question 75

Multiple Choice

If a company estimates that its expected return on pension plan assets will increase to 9.5% from 9.0%, this would be considered:

• A)an extraordinary gain.
• B)a change in accounting principle.
• C)a prior period adjustment.
• D)a change in accounting estimate.

---

Definitions:

Subculture

A subgroup within a broader society that typically has differing values or interests compared to the dominant cultural norms.

Dominant Culture

The prevailing culture in a society, which holds majority power and influences social norms, values, and practices.

Rationalization

The process of replacing traditional and spontaneous methods of organization with calculated, efficient, and logical processes.

Max Weber

A German sociologist, philosopher, and political economist who profoundly influenced social theory and the discipline of sociology itself, notably with his analysis of modern Western society.