A Company's Pension Expense Includes All of the Following Items

question 26

Multiple Choice

A company's pension expense includes all of the following items except

• A) service cost.
• B) employer's contribution to the pension fund.
• C) amortization of unrecognized prior service cost.
• D) interest cost on the projected benefit obligation.

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Definitions:

Revenues

Revenues refer to the total income generated by a company from its normal business operations, such as the sale of goods or provision of services.

Reversing Entries

Accounting entries that are made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.

Bookkeeping Procedure

The systematic recording of financial transactions and maintenance of financial records in a business.

Worksheet

A document or tool used for planning, calculating, or recording information, especially in accounting.