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Full Exam Name: SAP Certified Application Associate - SAP BusinessObjects Web Intelligence 4.3
Vendor Name: SAP
Exam Code: C_BOWI_43
Questions with Answers (PDF) 65
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NEW QUESTION: 1
For an entity with a defined postemployment benefit plan, the fair value of plan assets at the beginning of the year was US $500,000. No unrecognized net cumulative actuarial gain or loss existed. On the last day of the fiscal year the fair value of plan assets was US $620.000. Benefits paid equaled US $100,000 and the entity made US $120.000 in contributions. The discount rate was 10% and the expected long-term rate of return on plan assets was 12%. The actual return on plan assets was:
A. US 100,000
B. US $75,000
C. US $60,000
D. US $50,000
Answer: A
Explanation:
The actual return on plan assets is equal to the difference between the fair value of plan assets at the beginning and the end of the year adjusted for contributions and benefits paid. Thus, the actual return is US $100,000.


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