In Accounting for a Pension Plan, Any Difference Between the Pension

question 101

Multiple Choice

In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as

• A) an offset to the liability for prior service cost.
• B) pension asset/liability.
• C) as other comprehensive income (G/L)
• D) as accumulated other comprehensive income (PSC).

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Definitions:

Axes

Lines or reference points used in graphs and diagrams to represent different variables.

Origin

The point where the axes of a two-variable graph meet.

Graph

A visual representation of data, functions, or relationships between two or more variables, usually depicted using axes to show variations across dimensions.

Negatively Related

A relationship between two variables where one variable increases as the other decreases, indicating an inverse correlation.