Which of the Following Is True Regarding Pension Accounting and Reporting

question 22

Multiple Choice

Which of the following is true regarding pension accounting and reporting for state and local governments?

• A) When the General Fund makes a contribution to a pension trust fund, the account "Expenditures" is debited.
• B) The Statement of Changes in Fiduciary Net Position reports "additions" and "deductions," computed on the accrual basis.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Capital Balances

The amounts recorded in the equity section of a partnership or corporation's balance sheet, representing the owners' stakes in the company.

Income Ratios

Financial ratios that measure a company's ability to generate profit from its operations, commonly used in analyzing financial health and operational efficiency.

Retirement

The act of leaving one's job or profession and ceasing to work, typically after reaching a certain age or financial milestone.

Capital Account

In finance, it represents an individual's or entity's financial net worth or in international economics, it is part of a country's balance of payments.