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

question 19

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 past 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:

Profits

Net income that remains after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Critical Thinking

The ability to objectively analyze and evaluate an issue or situation to form a judgement, by questioning assumptions and identifying biases.

Social Responsibility

Social Responsibility involves businesses and individuals acting in ways that benefit society at large, beyond their own interests or profits.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.