If a Company Increases Its Expected Return on Plan Assets

question 76

Multiple Choice

If a company increases its expected return on plan assets this year, the effect would be to:

I. increase plan assets.
II. decrease PBO.
III. decrease pension expense.
IV. decrease minimum liability.

• A)I, II, and IV
• B)I and IV
• C)III and IV
• D)III only

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Definitions:

Primary Appraisal

The initial evaluation process where an individual assesses the significance of an event as a threat, challenge, or harm.

Secondary Appraisal

The process of evaluating one's ability to cope or manage the consequences of a potentially stressful event after initially assessing its significance.

Lazarus

Refers to the psychologist Richard Lazarus, known for his theory on emotion and stress which emphasizes the importance of cognitive appraisal.

Social Health

An individual's capacity to form satisfying interpersonal relationships with others and to adapt comfortably to different social situations.