Which of the Following Is Not True Regarding Pension Accounting

question 47

Multiple Choice

Which of the following is not true regarding pension accounting and reporting?

• A) Local governments include only the pension plans for which it is trustee in pension trust funds Statement of Fiduciary Net Assets.
• B) The pension trust fund Statement of Fiduciary Net Assets reflects the accrued actuarial liability (the excess of the projected benefit obligation over the net assets available for benefits).
• C) Pension investments are recorded at fair (market) value.
• D) None of the above; all are true.

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Definitions:

Cognitive Dissonance

The discomfort experienced when holding two or more conflicting beliefs, values, or attitudes, especially when actions contradict beliefs.

Exposure Effect

The phenomenon where repeated exposure to a stimulus increases an individual's preference for that stimulus.

Source Effects

The influence that the perceivable characteristics of a message source have on the recipient's acceptance or rejection of the message.

Efficacy

The ability to produce a desired or intended result, often used in the context of the effectiveness of drugs, treatments, or methodologies.