In Pension Accounting,how Are Past Service Costs Accounted for Under

question 67

Multiple Choice

In pension accounting,how are past service costs accounted for under ASPE?

• A)Recognized in the balance sheet as a liability for the full amount.
• B)Recognized in the income statement as an expense for the full amount.
• C)Not recognized,but disclosed in a note.
• D)Amortized over a specified period and included as part of pension expense.

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Definitions:

Depression

An emotional wellness issue where an individual experiences constant feelings of sadness or has a diminished interest in activities, significantly affecting their daily living.

Seligman

A psychologist known for his work in positive psychology and the theory of learned helplessness.

Julian Rotter

A psychologist from the United States who is recognized for creating the theory of social learning and the idea behind locus of control.

Skinner

B.F. Skinner, an American psychologist known for his work in behaviorism and the development of the operant conditioning theory.