The Amount of the Expected Return on Plan Assets Is

question 46

Multiple Choice

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

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

Cash Dividend

The disbursement of cash from a company's earnings to its shareholders, a decision made by the board of directors for a specific class of its investors.

Voting Common Stock

A class of stock that grants the shareholder voting rights in a corporation's decisions, typically one vote per share owned.

Market Price

The present rate at which a product or service can be purchased or sold.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's net income or loss.