CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

If a company estimates that its expected return on pension plan assets will increase to 9.5% from 9.0%, this would be considered a(n) ______.
A. extraordinary gain
B. prior period adjustment
C. change in accounting estimate
Explanation: Such a change is a change in accounting estimate and disclosure of the effect on both net income and income before extraordinary items for the current period is required.

User Contributed Comments 3

User Comment
azramirza IS IT BCUZ ITS AN ESTIMATE???
gill15 This might have been the worst question I've ever got wrong....

Time for abreak
farrahkame amen to that
You need to log in first to add your comment.