The Amount of the Expected Return on Plan Assets Is

question 66

Multiple Choice

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

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

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Definitions:

Discontinued Operations

Components of a business that have been sold or otherwise disposed of, or are classified as held for sale, and represent a separate major line of business or geographical area of operations.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after adjustments for minority interests, reported on a combined basis as if the group were a single entity.

Fair Value Enterprise Method

A valuation technique that estimates the value of an entire enterprise as if it were traded in the market, often used in the context of business combinations.

Cumulative Dividends

Dividends that accumulate if not paid in a given year, typically associated with preferred shares, and must be paid out before any dividends are given to common shareholders.