The Actual Return on Plan Assets

question 83

Multiple Choice

The actual return on plan assets

• A)is equal to the change in the fair value of the plan assets during the year.
• B)includes interest, dividends, and changes in the fair value of the fund assets.
• C)is equal to the expected rate of return times the fair value of the plan assets at the beginning of the period.
• D)all of these.

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Definitions:

Spot Trade

A transaction for the immediate delivery of a financial instrument or commodity.

Forward Market

A financial market in which contracts are made to buy or sell assets at a specified future date at a price agreed upon today.

Note Issuance Facility

A financing arrangement where borrowers can issue short-term debt securities under a pre-arranged limit.