Pension expense is:
A)The present value of the estimated future pension benefits earned by employees as a result of their services during the period.
B)The amount funded to the pension in a given year.
C)The future value of rights granted to employees as a result of their services during the period.
D)The amount withdrawn from the pension fund to pay retirees during the period.

Question

Quizplus · Accepted Answer

Pension expense represents the cost of the pension benefits that employees have earned during the period as a result of their services. It is calculated based on the estimated future benefits to be paid to employees, discounted to present value, and allocated to the current period. Options B, C, and D do not accurately represent pension expense.

Pension Expense Is