The Amount of the Expected Return on Plan Assets Is

question 30

Multiple Choice

The amount of the expected return on plan assets is usually computed by multiplying the:

• A)average carrying value of the plan assets by the expected long-term rate of return on plan assets.
• B)ending market-related value of the plan assets by the expected long-term rate of return on plan assets.
• C)beginning carrying value of the plan assets by the actuary's interest rate.
• D)beginning market-related value of the plan assets by the expected long-term rate of return on plan assets.

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Definitions:

Common Stock

Common stock represents shares of ownership in a corporation, giving holders voting rights and a residual claim on corporate earnings in the form of dividends.

After-Tax Interest Expense

The cost of borrowing after adjusting for the effects of taxes, calculated by subtracting the tax savings from the total interest expense.

Basic Earnings Per Share

A measure of a company's profitability that divides net income by the number of outstanding common shares.

Noncontrolling Interest

The share of equity in a subsidiary not held by the parent company, reflecting the interest that is not controlled by the majority shareholder.