The Projected Benefit Obligation Is the Measure of Pension Obligation

question 85

Multiple Choice

The projected benefit obligation is the measure of pension obligation that

• A) is required to be used for reporting the service cost component of pension expense.
• B) requires pension expense to be determined solely on the basis of the plan formula applied to years of service to date and based on existing salary levels.
• C) requires the longest possible period for funding to maximize the tax deduction.
• D) is not sanctioned under generally accepted accounting principles for reporting the service cost component of pension expense.

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