Amortization of Any Net Gain or Loss Is Included in Pension

question 57

Multiple Choice

Amortization of any net gain or loss is included in pension expense of a given year if at the

• A) end of the year, the cumulative net gain or loss exceeds 10% of the greater of the actual projected benefit obligation or the fair value of the plan assets.
• B) beginning of the year, the cumulative net gain or loss exceeds 10% of the greater of the actual accumulated benefit obligation or the fair value of the plan assets.
• C) end of the year, the cumulative gain or loss exceeds 10% of the greater of the actual accumulated benefit obligation or the fair value of the plan assets.
• D) beginning of the year, the cumulative gain or loss exceeds 10% of the greater of the actual projected benefit obligation or the fair value of the plan assets.

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Definitions:

Monthly Payments

Recurring payments made every month towards the repayment of loans or financial obligations, such as mortgages or personal loans.

Investing

Distributing monetary resources in the hope of creating financial gain or earnings.

Compounded Monthly

Pertains to the process where interest is calculated monthly and added to the initial principal amount of the investment or debt.

Monthly Payments

Regular payments made every month, often in the context of repaying a loan or lease.