SOFE SOFA-CFE Exam - Topic 6 Question 90 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 90
Topic #: 6

What of a particular period is principally determined based on benefits earned by participants during the period (service costs) less earnings on plan assets in excess of interest accretion of the projected benefit obligation.

AObligatory adjustment expense

BPayment accounting

CLoss adjustment expense

DPension expense

Show Suggested Answer

Suggested Answer: C

by Bette at Jun 21, 2024, 09:51 AM

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Donette

3 months ago

Really? I thought it was more complicated than that.

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Mary

3 months ago

Totally agree with D, makes the most sense!

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Wenona

3 months ago

Wait, isn't it just about service costs?

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Clorinda

4 months ago

I think it's A, but I'm not too sure.

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Bev

4 months ago

Definitely D, it's all about pension expense.

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Augustine

4 months ago

I feel like the key terms in the question point towards pension expense, but I need to double-check the definitions to be certain.

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Cyndy

4 months ago

I'm a bit confused because "obligatory adjustment expense" sounds familiar, but I can't recall if it relates to pension plans.

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Kindra

4 months ago

I remember practicing a similar question where we calculated pension expense based on service costs and earnings on plan assets. I think the answer might be D.

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Kiera

5 months ago

I think this has to do with pension accounting, but I'm not entirely sure if it's specifically about pension expense or something else.

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Monroe

5 months ago

This question is really testing my knowledge of pension accounting principles. I'll need to think through the details carefully and make sure I understand the relationship between the different components mentioned.

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Tiara

5 months ago

Okay, I think I've got this. The key is recognizing that the question is asking about the determination of pension expense, which is based on service costs and the difference between earnings on plan assets and interest accretion of the projected benefit obligation. I'm confident I can select the right answer.

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Nicholle

5 months ago

Hmm, this is a tricky one. I'm not entirely sure what "projected benefit obligation" refers to in this context. I'll have to review my notes on pension accounting to make sure I understand the concepts.

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Elfriede

5 months ago

This question seems to be testing my understanding of pension accounting. I'll need to carefully consider the key components mentioned, like service costs and earnings on plan assets.

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Janae

5 months ago

This question seems straightforward, but I want to make sure I understand the criteria correctly before selecting an answer.

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Elise

5 months ago

I'm a bit torn on this one. Option B could be good to gauge the class's reaction, but I'm worried that might just embarrass Johnny further. I think I'd lean more towards A or D to handle it firmly but discreetly.

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Titus

5 months ago

Ah, I've got it! The answer is touchstart and drag. Those are the two touch-specific events listed in the options. I'm confident in that response.

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Vallie

5 months ago

I think this might be a non-market strategy since AAA is lobbying the authority directly. Not entirely sure, though.

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Lonna

10 months ago

Pension expense? More like 'Pension Mess'! Accounting is so confusing, it's no wonder accountants are always in high demand. I bet the person who wrote this question is laughing at us from their ivory tower.

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Alyce

10 months ago

Okay, let's think this through logically. The question is talking about benefits and plan assets, so it's gotta be something related to pensions. I'll go with D) Pension expense, and hope the pension gods are on my side.

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Mable

8 months ago

User 3: Agreed, D) Pension expense seems like the right choice.

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Lucy

9 months ago

User 2: Yeah, that makes sense. Let's go with that.

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Charlesetta

9 months ago

User 1: I think it's D) Pension expense too.

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Daniel

10 months ago

Ugh, I hate these accounting questions. How am I supposed to know the difference between 'obligatory adjustment expense' and 'loss adjustment expense'? I'm just going to guess and hope for the best.

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Brianne

8 months ago

User 3: I'm going with obligatory adjustment expense.

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Mona

9 months ago

User 2: I think it might be pension expense.

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Hortencia

9 months ago

User 1: I know, these accounting questions are so confusing.

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Annelle

10 months ago

D) Pension expense, for sure. I studied this topic extensively, and that's the correct answer. Piece of cake!

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Timothy

9 months ago

D) Pension expense, for sure. I studied this topic extensively, and that's the correct answer. Piece of cake!

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Marti

9 months ago

D) Pension expense

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Bettina

9 months ago

C) Loss adjustment expense

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Margery

9 months ago

B) Payment accounting

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Carol

9 months ago

A) Obligatory adjustment expense

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Thaddeus

10 months ago

I'm not sure about this one. Can someone explain why it's not A) Obligatory adjustment expense?

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Leonora

11 months ago

Hmm, this seems like a tricky one. Pension expense, maybe? I mean, that's the only option that kind of makes sense with the whole 'benefits earned by participants' thing.

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