One Component of Pension Expense Is Expected Return on Plan

question 100

Multiple Choice

One component of pension expense is expected return on plan assets.Plan assets include

• A)contributions made by the employer and contributions made by the employee when a contributory plan of some type is involved.
• B)plan assets still under the control of the company.
• C)only assets reported on the statement of financial position of the employer as pension asset\liability.
• D)none of these.

---

Definitions:

Macroeconomist

An economist who specializes in macroeconomics, studying aggregated indicators and the behavior of the economy as a whole, including inflation, unemployment, and economic growth.

Normative Statement

A statement that reflects an opinion, value judgment, or what ought to be, rather than what is empirically verifiable.

Positive Statement

An objective statement based on facts that can be tested and validated, used in contrast to normative statements which express opinions or what ought to be.

Normative Statements

Statements that express opinions, desires, or judgments about what should be, and do not make factual or objective claims.