Which of the Following Matters Affecting a Pension Plan During

question 21

Multiple Choice

Which of the following matters affecting a pension plan during a year does directly affect the expense shown in the income statement?

• A) Service cost
• B) Unexpectedly good earnings on the pension plan assets
• C) Changes in the assumptions about future earnings of employees
• D) Changes in assumptions about future life expectancy of retirees

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Definitions:

Policy

The insurance document signed by the insured party and the insurer.

Policy Provider

An entity or organization that issues policies, typically in the context of insurance, offering coverage for various risks.

Underwriter

A party who receives payments from an insured party and makes the payment to the beneficiary.

Insurer

The party who receives payments from the insured party and makes the payment to the beneficiary.