What Is an Actuarial Gain

question 90

Multiple Choice

What is an actuarial gain?

• A)An unfavourable difference between actual and expected amounts for pension obligations.
• B)A favourable difference between actual and expected amounts for pension assets.
• C)An unfavourable difference between actual and expected amounts for pension contributions.
• D)A favourable difference between actual and expected amounts for pension contributions.

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Definitions:

FOB Shipping Point

Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination.

Estimated Method

An accounting technique used to approximate values or quantities, such as depreciation or inventory levels, when exact figures are unavailable.

Inventory Costing

The process of assigning costs to inventory items based on the method chosen (e.g., FIFO, LIFO, or weighted average) to accurately value the inventory on the balance sheet and match costs to revenues on the income statement.

Perpetual Inventory

An inventory system that updates the quantity and value of inventory after each transaction or event.