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One Component of Pension Expense Is Actual Return on Plan

Question 32

Multiple Choice

One component of pension expense is actual return on plan assets. Plan assets include


A) assets that a company holds to earn a reasonable return, generally at minimum risk.
B) plan assets still under the control of the company.
C) only assets reported on the balance sheet of the employer as prepaid pension cost.
D) None of these answers are correct.

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