Question

The relationship between the amount funded (cash sent to trustee) and the amount reported for pension expense is as follows: Select one: a. pension expense must equal the amount funded. b. pension expense may be greater than, equal to, or less than the amount funded. c. pension expense will be more than the amount funded. d. pension expense will be less than the amount funded.

Answer 1

pension expense may be greater than, equal to, or less than the amount funded.

Answer: Option B.

Explanation:

Pension expense is the expense that a trustee has to bear to give pensions and other offerings to the people who have retired from the services which they were offering.

The amount that the trustee will get in the form of amount funded does not necessarily be the same amount as the expenses of the cash given in the form of pension. It can be greater than equal to or even lesser than the expenses made.