Amortizing a Net Actuarial Gain for Pensions Will ________

question 107

Multiple Choice

Amortizing a net actuarial gain for pensions will ________.

• A) increase retained earnings and increase accumulated other comprehensive income
• B) increase retained earnings and decrease accumulated other comprehensive income
• C) decrease retained earnings and decrease accumulated other comprehensive income
• D) decrease retained earnings and increase accumulated other comprehensive income

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Definitions:

Cash Flows

represent the net amount of cash and cash-equivalents being transferred into and out of a business.

Zero-Interest Financing

Zero-Interest Financing is a loan or credit offer with a 0% interest rate for a set period, making purchases more affordable upfront but often requiring a good credit score.

APR

Annual Percentage Rate, which represents the annualized cost of credit including interest and fees, making it easier to compare loan products.

Growing Annuity

A series of periodic payments that grow at a constant rate for a specific number of periods.