What Is the Proper Treatment of Pension Expense When Computing

Multiple Choice

What is the proper treatment of pension expense when computing net cash from operating activities using the indirect method?

A) net income is increased by the excess of the expense over the cash used to fund the plan
B) net income is increased by the sum of the expense plus the cash used to fund the plan
C) net income is increased by pension expense
D) net income is decreased by the cash used to fund the plan