Answer:
Pension plan assets at the year end will be $214
Explanation:
Wee have given pension plan assets = $200 million
Return on plan assets = 5%
So return will be equal to = $200×0.05 = $10 million
Cash contribution is given $12 million
Retiree benefits is $8 million
We have to find the amount of pension plan assets at the year end
Pension plan assets is equal to = Plan assets at beginning of the year + actual return - retiree benefits = $200 + $10 +$12 - $8 = $214
So pension plan assets at the year end will be $214
Answer:
The correct answer is C. Credits decrease assets and increase liabilities.
Explanation:
A credit is a provision of money in the form of a loan, granted by a creditor (lender) to a debtor (borrower). For the creditor, the transaction gives rise to a claim on the borrower, under which he can obtain repayment of the funds and payment of remuneration (interest) according to a fixed schedule. For the borrower, whether it is a business or an individual, the credit establishes the existence of a debt (increasing liabilities) and opens the availability of a temporary financial resource.
