One Component of Pension Expense Is Interest Revenue on Plan

question 56

Multiple Choice

One component of pension expense is interest revenue 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 answer choices are correct.

---

Definitions:

Margin of Safety Percentage

A financial metric indicating the difference between actual sales and break-even sales, expressed as a percentage of actual sales.

Break-even Point

The point at which total costs equal total revenue, meaning there is no profit and no loss.

Sales Dollars

The total monetary amount of sales transactions made within a particular period.

Break-even Point

The point at which total costs and total revenue are equal, meaning no profit is made but losses are recovered.