In Accounting for a Pension Plan, Any Difference Between the Pension

question 11

Multiple Choice

In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as

• A) An offset to the liability for prior service cost
• B) Accrued or prepaid pension cost
• C) An operating expense in this period
• D) An accrued actuarial liability

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Definitions:

Payroll

The total amount of money that a company is obligated to pay to its employees for a set period or on a given date.

Employee Relations

Employee relations refer to the efforts an organization makes to manage relationships between employers and employees, often aiming to prevent and resolve conflicts, and ensure fair treatment.

HR Functions

HR Functions refer to the various roles and responsibilities of the Human Resources department, including recruitment, training, employee relations, and benefits administration.

Outsourced

The practice of hiring external organizations or individuals to perform tasks, handle operations or provide services that are either difficult to manage or outside the company's core competencies.