Which Statement Best Explains the Meaning of "Current Service Cost

question 80

Multiple Choice

Which statement best explains the meaning of "current service cost"?

• A)The present value of pension benefits that employees have earned.
• B)The increase in the present value of obligations from services rendered in the current period.
• C)The amount of funds deposited with the pension trust in the year.
• D)The annual contribution required by the employer as specified in the pension plan agreement.

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Definitions:

Acceleration

The rate of change of velocity of an object with respect to time.

Portion

A part or section of a whole, often expressed as a fraction or percentage.

Complete

To finish or make whole; in mathematics, often refers to making a square in quadratic equations or filling in missing parts of an expression or equation.

Acid Solution

A aqueous solution containing more hydrogen ions (H+) than hydroxide ions (OH-), typically having a pH less than 7.