Exhibit 1A-3 Straight Line

question 69

Multiple Choice

Exhibit 1A-3 Straight line
-In Exhibit 1A-3, as X increases along the horizontal axis, corresponding to points A-B on the line, the Y values decrease. The relationship between the X and Y variables is:

• A) direct.
• B) inverse.
• C) independent.
• D) variable.

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Definitions:

Projected Benefit Obligation

Projected Benefit Obligation (PBO) is a measure of the estimated total amount a pension plan needs to cover future pension benefits owed to employees, based on expected future salary increases.

Plan Assets

The resources that a pension plan has accumulated to cover future obligations to participants.

Amortization of Prior Service Costs

The process of gradually writing off the initial costs of services received or obligations incurred in the past, over the service periods of the involved employees.

Pension Accounting and Reporting

The process of recording and communicating information regarding a company's pension obligations and related costs in its financial statements.