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:

Expected Return

The probable return on an investment, considering all potential outcomes and their likelihoods.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the spread of data.

Investment Risk

The possibility of losing some or all of the invested capital, with the potential for variability in investment returns.

Strong Form

In the context of efficient market hypothesis, it states that all information, public and private, is completely reflected in stock prices.