The Three Components of Pension Expense That Are Present Most

question 214

Multiple Choice

The three components of pension expense that are present most often are:

• A) Service cost, prior service cost, and gain on plan assets.
• B) Service cost, interest cost, and gain from revisions in pension liability.
• C) Service cost, contribution cost, and prior service cost.
• D) Service cost, interest cost, and expected return on plan assets.

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Definitions:

Good Faith Purchasers

Individuals who buy property without knowledge of any existing claims or issues, often protected by law.

Infants

Legally refers to individuals who are under the age of majority, typically considered to be 18 years in many jurisdictions, and who are thus limited in their ability to enter into contracts.

Minors

Individuals under the age of legal adulthood, which varies by country, typically recognized as under 18 or 21 years old.

Necessary

Something that is essential or required in a particular situation or for achieving a specific outcome.