Refunds of employee contributions are debited to the Net Assets Held in Trust for Benefits ledger account of a governmental entity's pension trust fund.

Question

Quizplus · Accepted Answer

Refunds of employee contributions are typically debited to the liability account that represents the obligation to pay the employees, not directly to the Net Assets Held in Trust for Benefits, which reflects the overall financial position of the fund.

Refunds of Employee Contributions Are Debited to the Net Assets