CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

The actual return on plan assets should increase annual pension expense. True or False?
Correct Answer: False

User Contributed Comments 5

User Comment
bmeisner What if the actual return is negative? The question should be true, false or uncertain with uncertain the correct answer.
sags and in anyway we use long term rate of return on assets to compute pension expense and not actual return on plan assets....
Nightsurfer Pension expense uses expected return not actual return.
kodali Good point NightSurfer !
emilhaque The actual return could increase or decrease annual pension expense. It "should" not automatically increase it.
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