Q1. Financial analysts can use select data from a company’s financial statements to derive an adjusted pension expense in order to better reflect the company’s true economic pension cost. Which of the following formulas will most accurately calculate a company’s adjusted pension expense? A) Beginning fair value of plan assets + service cost + interest cost – ending fair value of plan assets. B) Service cost + interest cost – actual return on plan assets – benefits paid. C) Service cost + interest cost – actual return on plan assets.
Q2. An “adjusted” pension expense can be calculated to better reflect a firm’s true economic pension cost than the reported pension expense. Which of the following adjustments to reported pension cost should be made? A) The inclusion of amortization of unrecognized items. B) The inclusion of actual benefits paid to employees. C) The use of actual instead of expected return on assets.
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发表于 2009-1-17 14:34
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