Question

"In a defined benefit plan, pension expense is equal to the firm s cash contribution." TRUE...

  1. "In a defined benefit plan, pension expense is equal to the firm s cash contribution."

    TRUE

    FALSE

  1. All of the following increase pension expense except:

    service cost.

    interest on the liability.

    amortization of prior service cost.

    all of these answers are correct.

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Answer #1

1. Answer is False
Since Pension expense includes service cost, interest cost etc

2. Answer is All of the answers are correct
Service cost, interest on liability and amortization of prior service cost form part of Pension expense, therefore all of them increases the pension expenses

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