Which of the Following Statements About Pension Trust Fund Accounting

question 35

Multiple Choice

Which of the following statements about Pension Trust Fund accounting and reporting requirements is true?

• A) A Statement of Cash Flows must be presented for each Pension Plan Trust Fund.
• B) Actuarial information is not reported in the fiduciary fund financial statements.
• C) Debt investments are not reported at amortized cost.
• D) Pension plan capital assets are reported at historical cost but are not depreciated.

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Definitions:

Division of Labor

The allocation or distribution of tasks, responsibilities, or jobs among individuals or groups, often based on specialization.

Periodic Inventory System

An inventory system where inventory levels are updated and cost of goods sold is calculated at set intervals, rather than continuously.

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, calculating it based on the weighted average of the cost of goods available for sale.

Ending Inventory

The cumulative worth of merchandise available for purchase at the conclusion of a financial period.